
Book , AJT 

/896 



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;SS, * HOUSE OF BEPEESENTATIVES 

1st Session. 



54th Congress, ) HOUSE OF BEPBESENTATIVES. ( Report 
k > }Eo.22G3. 



REPORT 



OF TUB 






COMMITTEE ON WAYS AND MEANS 



CONCERNING 



RECIPROCITY AND COMMERCIAL TREATIES. 



June 6, 1896. — Submitted by Mr. HonciNS, from the Committee on Ways and 
Means, and ordered to be printed 



WASHINGTON: 

GOVERNMENT PRINTING OFFICE. 
1896, 



vtftf 



ft* 



Subcommittee : 

ALBERT J. HOPKINS, 

Chairman. 

JONATHAN P. DOLLIVER. 
. JAMES A. TAWNEY. 
BENTON MeMILLIN. 
JOHN L. MeLAURIN. 



WILLIAM E. CURTIS, 

Special Agent in Charge. 



SE? * 1906 
D.ofD. 






TABLE OF CONTENTS. 



Page. 

I. Introductory 5 

II. History of the reciprocity policy 6 

III. Results of reciprocity 14 

IV. Protests against the repeal of reciprocity 21 

V. Effect of reciprocity upon the exports of breadstuff's 27 

VI. The situation in France and Germany 35 

VII. Discriminations against American commerce 38 

VIII. The situation in Cuba 40 

IX. Present condition of the export trade 43 

Views of the minority of the committee 53 

Appendix — 

A. Reciprocity with Canada 61 

B. Trade with the Argentine Republic and Uruguay 77 

C. Trade with Japan and China * 105 

D. Adulterated foods exported to the United States 125 

E. Restriction upon American products by foreign countries 135 

F. Replies from commercial and industrial organizations to inquiries 145 

G. Addresses before Committee on Ways and Means by representatives 

of the live-stock industry 191 

H. Addresses by representatives of the flour industry 201 

I. Addresses by representatives of various industries 263 

J. Replies from merchants, manufacturers, exporting and commission 

houses, steamship companies, efyj ..,.',.* 293 

K. The foreign commerce of the United States 547 

L. Rates of duty imposed by foreign countries upon articles exported 

from the United States .- 603 

Index to appendixes 627 

3 



I. 

INTRODUCTORY. 



The Committee on Ways and Means, to which was referred sundry 
bills and resolutions relating to reciprocity agreements, commercial 
treaties, and retaliation against unjust and unnecessary restrictions 
imposed upon the foreign commerce of the United States, having, by 
direction of the House, carefully investigated the subjects referred to, 
submit the following report: 

lu order that they might give more intelligent consideration to the 
subjects referred to them, your committee, by public announcement 
and otherwise, invited representatives of the various arts, industries, 
and occupations interested to appear before them for the purpose of 
making statements and explanations concerning the present condition 
of the export trade of the United States, and the legislation necessary 
to promote its extension and prosperity. The statements and explana- 
tions of these gentlemen, which are both interesting and important, 
are published herewith. For the purpose of ascertaining the senti- 
ments and suggestions of those who are directly interested in the sub- 
jects under consideration, your committee also caused circulars of 
inquiry to be printed and forwarded to merchants engaged in the 
export trade, to manufacturers in different sections of the country who 
produce articles for export and have made active efforts to introduce 
and extend the sale of their products in foreign markets, and to com- 
mercial and industrial associations in the United States. The replies 
received are published herewith. 

It will be observed that there is a remarkable unanimity in the sen- 
timents expressed concerning the value and results of the reciprocity 
arrangements negotiated with certain countries and colonies under the 
authority of section 3 of the tariff act of 1890 and the disastrous effect 
of their repeal. It will also be noticed that the commercial and indus- 
trial interests of the United States, as thus represented, without politi- 
cal distinction, are almost without exception anxious that such arrange- 
ments shall be renewed and negotiated with other nations, and that the 
reciprocity policy be permanently adopted in future legislation affecting 
the tariff and the foreign commerce of this country. 

5 



n. 

HISTOET OF THE EEOIPEOCITT POLICY. 



The active endeavor to extend the export trade of the United States 
in the Latin- American Eepublics and colonies by means of reciprocity 
treaties was inaugurated by President Arthur in 1882, when Gen. 
Ulysses S. Grant and William Henry Trescot, representing this Gov- 
ernment, and Matias Eomero and Estanislao Canedo, representing the 
Republic of Mexico, negotiated a treaty under which certain merchan- 
dise from the United States was to be admitted free of duties into 
Mexico, and certain products of that country were to be admitted free 
into the United States. But the Congress of the United States failed 
to enact the legislation necessary to carry it into effect, and the treaty 
expired by limitation upon the 20th of May, 1887. 

In 1884, John W. Foster, then minister to Spain, negotiated a similar 
treaty with that Government, acting in behalf of its American colonies, 
Cuba and Puerto Eico. A third treaty was negotiated by Mr. Freling- 
huysen, then Secretary of State, with Don Manuel J. Galvan, a pleni- 
potentiary appointed for that purpose by the Government of Santo 
Domingo. Both of these treaties failed to receive the sanction of the 
Senate of the United States. 



THE SOUTH AMERICAN COMMISSION. 

During the same year, 1884, under the authority of Congress, Presi- 
dent Arthur appointed a commission "to ascertain the best modes of 
securing more intimate international and commercial relations between 
the United States and the several countries of Central and South 
America." This commission was composed of George H. Sharpe, of 
New York, Thomas C. Beynolds, of Missouri, and Solon O. Thacher, of 
Kansas, with William E. Curtis as secretary. Mr. Sharpe having 
resigned in March, 1885, Mr. Curtis was appointed by President 
Cleveland to succeed him. 

This commission visited the several American Eepublics with instruc- 
tions (1) to ascertain by inquiry the opinion of merchants actually 
engaged in trade concerning the most practicable means of promoting 
commerce with the United States; (2) to confer with the several Gov- 
ernments as to the advisability of holding an international American 
conference, and obtain their views as to what topics should be dis- 
cussed at such a gathering; and (3) to initiate reciprocity treaties simi- 
lar to those already arranged with Mexico and Spain, with such of the 
American Eepublics as desired to enter into negotiations for that 
purpose. 
6 



RECIPROCITY AND COMMERCIAL TREATIES. 7 

The commission returned to Washington and made its report (House 
Ex. Doc. No. 226, Forty-eighth Congress, second session, and House Ex. 
Doc. No. 50, Forty-ninth Congress, first session). With a single excep- 
tion, the Governments visited expressed not only a willingness, but a 
desire to enter into reciprocal arrangements with the United States, 
and in several cases a definite understanding was reached and proto- 
cols exchanged. 

The commission recommended that an international conference be 
held in Washington, to which all of the Eepublics visited had consented 
to send delegates, and a list Of topics for consideration Avas submitted. 
A bill was passed by Congress to carry out that recommendation, and 
on the 20th of May, 1888, became a law without the approval of the 
President. The conference met at Washington in October, 1889, all of 
the independent American nations being represented except Santo 
Domingo. 

RECIPROCITY TREATIES RECOMMENDED. 

Among other topics announced for discussion was " Measures toward 
the formation of ah American Customs Union, under which the trade 
of American nations with each other shall, so far as possible and 
profitable, be promoted." This was referred, to a committee, which, 
after due consideration, reported that the systems of taxation and the 
condition of the public revenues of the Latin- American Eepublics 
made such a customs union as had been proposed, that is, a free inter- 
change of merchandise, impracticable; but recommended the negotia- 
tion of commercial treaties embracing mutual tariff concessions, so far 
as could be done without impairing the revenues necessary to sustain 
their several Governments. 

On the 19th of June, 1890, Mr. Blaine, Secretary of State, handed 
this report and recommendation to the President with a letter, in which 
he said: 

Fifteen of the seventeen Republics with which we have been in conference have 
indicated, by the votes of their representatives in the International American Con- 
ference, and by other methods which it is not necessary to define, their desire to 
enter upon reciprocal commercial relations with the United States; the remaining 
two express equal willingness, could they be assured that their advances would be 
favorably considered. 

The last clause of this paragraph refers to Chile and the Argentine 
Eepubli c, whose chief export is wool . They would enter into reciprocity 
treaties with the United States only upon the condition that wools of 
the coarser grades be admitted free into the United States, or at a ratio 
of duty considerably below the then existing tariff on that article. 

MR. BLAINE'S RECOMMENDATIONS. 

u To escape the delay and uncertainty of treaties," Mr. Blaine sug- 
gested "an amendment to the pending tariff bill authorizing the Presi- 
dent to. declare the ports of the United States free to all the products 
of any nation of the American hemisphere upon which no export 
duties are imposed, whenever, and so long as, such nations shall admit 
to its ports free of all national, provincial (State), municipal, and other 
taxes, our flour, corn meal, and other breadstuff's, preserved meats, 
fish, vegetables, and fruits, cotton-seed oil, rice, and other provisions, 
including all articles of food, lumber, furniture, and other articles of 
wood, agricultural implements and machinery, mining and mechanical 
machinery, structural steel and iron, steel rails, locomotives, railway 
cars and supplies, street cars, and refined petroleum. 



8 RECIPROCITY AND COMMERCIAL TREATIES. 

"I mention these particular articles because they have been most 
frequently referred to as those with which a valuable exchange could 
be readily affected. The list could no doubt be profitably enlarged by 
a careful investigation of the needs and advantages of both the home 
and foreign markets. 

"The opinion was general among the foreign delegates that the legis- 
lation herein referred to would lead to the opening of new and profitable 
markets for the products of which we have so large a surplus, and thus 
invigorate every branch of agricultural and mechanical industry." 

In conclusion the Secretary of State observed: "Of course the 
exchanges involved in these propositions would be rendered impossible 
if Congress, in its wisdom, should repeal the duty on sugar by direct 
legislation, instead of allowing the same object to be attained by the 
reciprocal arrangements suggested.' 7 

THE MESSAGE OF PRESIDENT HARRISON. 

This letter was forwarded to Congress by the President, with the 
following message : 

To the Senate and House of Representatives : 

1 transmit herewith, for your information, a letter from the Secretary of State, 
inclosing a report of the International American Conference, which recommends that 
reciprocal commercial treaties be entered into between the United States and the 
several other Republics of this hemisphere. 

It has been so often and so persistently stated that our tariff laws offered an insur- 
mountable barrier to a large exchange of products with the Latin -American nations 
that I deem it proper to call especial attention to the fact that more than 37 per cent 
of the products of those nations sent to our ports are now admitted free. If sugar 
is placed upon the free list, practically every important article exported from those 
states will be given untaxed access to our markets, except wool. The real difficulty 
in the way of negotiating reciprocity treaties is that we have given freely so much 
that would have had value in the mutual concessions which such treaties imply. I 
can not doubt, however, that the present advantages which the products of these 
near and friendly states enjoy in our markets — though they are not by law exclu- 
sive — will, with other considerations, favorably dispose them to adopt such meas- 
ures, by treaty or otherwise, as will tend to equalize and greatly enlarge our mutual 
exchanges , 

It will certainly be time enough for us to consider whether we must cheapen the 
cost of production by cheapening labor, in order to gain access to the South Ameri- 
can markets, when we have fairly tried the effect of established and reliable steam 
communication and of covenient methods of money exchanges. There can be no 
doubt, I think, that with these facilities well established and with a rebate of 
duties upon imported raw materials used in the manufacture of goods for export, 
our merchants will be able to compete in the ports of the Latin-American nations 
with those of any other country. 

If after the Congress shall have acted upon pending tariff legislation it shall 
appear that, under the general treaty-making power or under any special powers 
given by law, our trade with the States represented in the conference can be 
enlarged upon a basis of mutual advantage, it will be promptly done. 

Benj. Harrison. 



THE RECIPROCITY SECTION IN THE ACT OF 1890. 

In response to these recommendations the Fifty-first Congress 
embodied in the tariff act of 1890 a provision familiarly known as the 
reciprocity section, which reads as follows: 

That with a view to secure reciprocal trade with countries producing these arti- 
cles; and for this purpose, on and after the first day of July, 1892, whenever, and 
so often as the President shall be satisfied that the Government of any country pro- 
ducing and exporting sugars, molasses, coffee, tea, hides, raw and uncured, or any 
of such articles, imposes duties or other exactions upon the agricultural or other 
products of the United States, which iu view of the free introduction of such sugar, 



RECIPROCITY AND COMMERCIAL TREATIES. V 

molasses, coffee, tea, and hides into the United States he may deem to he reciprocally 
unequal and unjust, he shall have the power and it shall he his duty to suspend, by 
proclamation to that effect, the provisions of this act relating- to the free introduc- 
tion of such/sugar, molasses, coffee, tea, and hides, the production of such) country, 
for such time as he shall deem just, and in such case and during such suspension 
duties shall he levied, collected, and paid upon sugar, molasses, coffee, tea, and hides 
the product of or exported from such designated country as follows, namely : 

All sugars not ahpve number thirteen Dutch standard in color shall pay duty on 
their polariscopic test as follows, namely: 

All sugars not above number thirteen Dutch standard in color, all tank bottoms, 
sirups of cane juice or of beet juice, melada, concentrated melada, concrete and con- 
centrated molasses, testing by the polariscope not above seventy-live degrees, seven- 
tenths of one cent per pound ; and for every additional degree or fraction of a degree 
shown by the polariscope test, two hundredths of one cent per pound additional. 

All sugars above number thirteen Dutch standard in color shall be classified by 
the Dutch standard of color and pay duty as follows, namely: All sugar above 
number thirteen and not above number sixteen Dutch standard of color, one and 
three-eighths cents per pound. 

All sugar above number sixteen and not above number twenty Dutch standard of 
color, one and five-eighths cents per pound. 

All sugars above number twenty Dutch standard of color, two cents per pound. 

Molasses testing above fifty-six degrees, four cents per pound. 

Sugar drainings and sugar sweepings shall be subject to duty either as molasses or 
sugar, as the case may be, according to polariscopic test. 

On coffee, three cents per pound. 

On tea, ten cents per pound. 

Hides, raw or uncured, whether dry, salted, or pickled, Angora goatskins, raw, 
without the wool, unmanufactured, asses' skins, raw or unmanufactured, and skins, 
except sheepskins, with the wool on, one and one-half cents per pound. 

NEGOTIATIONS WITH BRAZIL FOR RECIPROCITY. 

Immediately after the passage of this measure, diplomatic negotia- 
tions that had been interrupted by the tariff agitation in Congress were 
resumed. It may be said that such negotiations, with special plenipo- 
tentiaries from the Emperor of Brazil, had been commenced as early as 
August, 1889, and that upon the establishment of the Eepublic were 
immediately renewed. It was not long, therefore, before an arrange- 
ment was concluded under which the Brazilian Government authorized 
the admission into its ports, free of all duties, the products of the farms 
and mines of the United States, all forms of machinery and railway 
supplies, agricultural implements, labor-saving machinery, and a con- 
siderable number of other articles; and the admission of a long list of 
other manufactured articles, including wearing apparel, hardware, pre- 
served meats, fruits and vegetables, lard, dairy products, lumber, fur- 
niture, wagons, and carriages, at a rate of duty 25 per cent less than 
that imposed upon similar articles imported from other countries. 

A similar arrangement was shortly after made by John W. Foster, 
representing the Secretary of State, with the Governments of Spain, 
acting for her American colonies, Cuba and Puerto Eico, with the 
Bepublics of Santo Domingo, Gautemala, Salvador, Costa Eica, and 
Nicaragua, and with the British colonies of Jamaica, Trinidad, Barba- 
does, Guiana, the Leeward Islands, and the Windward Islands. 
Arrangements were also made with Germany and Austria, under 
which, in consideration for the free admission of their beet sugar into 
the United States, the agricultural products from this country were 
admitted into German and Austrian ports at largely reduced rates of 
duty. The discrimination in favor of the products of the United States 
amounted to 30 per cent on wheat, rye, hops, flour, and all other mill 
products; 37 J per cent on oats; 33| per cent on game; 20 per cent on 
corn and lumber; 25 per cent on pulse, timber, and fresh meat; 15 per 
cent on pork and butter, and corresponding rates upon other articles. 



10 RECIPROCITY AND COMMERCIAL TREATIES. 

ATTEMPT TO NEGOTIATE AN ARRANGEMENT WITH FRANCE. 

A reciprocity arrangement was also negotiated with the Government 
of France under which a long list of our products were to be admitted 
free or at reduced rates of duty into the French Bepublic and colonies 
in exchange for the free admission of beet sugar, hides, coffee, and 
other French products into the United States. But there was a great 
deal of trouble and delay because of a discrepancy in the statistics, and 
the French Chambers declined to approve the convention. Accord- 
ing to their figures, they surrendered duties upon imports to the value 
of 9,192,000 francs, and we gave in' exchange duties on only 7,320,575 
francs, although, according to our figures, which were accepted by the 
French minister in making the negotiations, there was very little 
difference. 

Mr. Whitelaw Eeid, who was then our minister at Paris, offered to 
compromise by accepting our returns as to imports from France into the 
United States and French returns as to imports from the United States 
into France, and the minister of commerce was willing to accept this 
solution, but the agrarian element in the Chamber of Deputies was very 
suspicious, and debated the question until the present Administra- 
tion came into power in the United States, when the efforts to secure 
advantages for our products in the French markets culminated in the 
passage of a law authorizing the application of the minimum tariff of 
France to the following products and merchandise of the United States: 
Canned meats, fruits dried or pressed with the exception of raisins, 
fresh table fruit, dried apples and pears, hops, barrel staves, paving 
blocks, rough common wood, squared or sawed. 

THE TARIFF SYSTEM OF FRANCE. 

The schedule of articles included in the commercial arrangement 
originally agreed upon was very much more extended and applied to 
the Republic of France and to all her colonies alike. 

The tariff system of France consists of two scales of rates — one 
called the general tariff, which is applicable to all countries in com- 
mon; the other, called the minimum tariff, which is only applicable to 
countries which, by treaties with France, are entitled to the benefit of 
its lower rates. The difference between the two rates is usually 25 per 
cent. 

The following is a list of the articles included in the original arrange- 
ment: Timber in the rough and sawed and squared, lumber, staves and 
other cooperage supplies, clapboards, lumber for packing boxes, canned 
meats, table fruits of all kinds, cider fruits of all kinds, grapes for 
wines, dried apples, pears, and peaches, plums and other dried fruits, 
prunes and plums, wines. 

The most important items in this list are lumber and timber, of 
which we send about two and a half million dollars' worth annually to 
France and her colonies; canned meats, of which our exports reach 
four millions, and dried fruits. The list might be considerably enlarged 
if, in the negotiation of another arrangement, a longer list of the prod- 
ucts of France and her colonies might be taken into consideration as 
well as coffee, sugar, and hides. 

An earnest effort was made to obtain a mitigation of the present 
needless inspection of American pork as a part of the reciprocity 
arrangement, but nothing definite was secured further than an assur- 
ance that if the existing systematic and scientific inspection in the 
United States was continued the French regulations would be modified 
so as not to obstruct commerce. 



RECIPROCITY AND COMMERCIAL TREATIES. 11 

Since that time France and Bussia have entered into a reciprocity 
treaty under which the duty on crude petroleum from Bussia is reduced 
to 9 francs per 100 kilograms; on refined, 9 francs per 100 liters; on 
lubricating oils and other products of petroleum, 9 francs per 100 kilo- 
ragms. 

In exchange for this Bussia made a very liberal reduction in her, 
duties upon a long list of articles exported from France. There was a 
15 per cent reduction upon confectionery, condiments of all kinds, pre- 
served fruits and vegetables, a 10 per cent reduction on liquors and 
brandies, 10 per cent upon machinery, 25 per cent on agricultural * 
implements and machinery, 20 per cent upon knitted goods, from 10 to 
15 per cent on all forms of wearing apparel, and similar reductions on 
many other articles. 

COLOMBIA. 

The Bepublic of Colombia was the most reluctant of all the countries 
with which reciprocity arrangements were attempted. Shortly after 
the approval of the tariff act of 1890 circulars were sent to the repre- 
sentatives of foreign governments at Washington, calling their attention 
to section 3 and inviting correspondence with a view to the application 
of the principles to their trade with the United States. At the same 
time the minister of the United States at Bogota, Mr. John T. Abbott, 
was directed to approach the minister of foreign affairs and make known 
to him the friendly desire of the Government of the United States 
respecting commercial intercourse between the two countries and the 
hope that there might be a convention arranged that would be profita- 
ble to both upon the basis of that legislation. 

No notice having been taken of these suggestions, Mr. Blaine again 
called the attention of Mr. Hurtado, the Colombian minister at Wash- 
ington, to the matter, and informed him that "our minister at Bogota 
reports that all his efforts in the direction indicated have been without 
success, and there is no present prospect of an agreement on the sub- 
ject. It is deeply regretted by the President that his invitation to the 
Government of Colombia has not been responded to in the same con- 
ciliatory spirit." 

Hearing nothing from this, Secretary Blaine, under date of January 
7, 1892, notified the Colombian minister that "unless some satisfactory 
commercial arrangement is entered upon between the Government of 
the United States and the Government of Colombia on or before the 
15th of March, 1892," the President would be compelled to issue a 
proclamation reimposing duties upon sugar, molasses, coffee, tea, and 
hides imported from Colombia into the United States. 

COLOMBIA INVOKES AN OLD TREATY. 

Mr. Hurtado then appealed to the treaty of amity, commerce, and 
navigation entered into in 1816, under which he claimed the commerce 
of Colombia was entitled to all the privileges which the United States 
might concede to other nations, and "especially to all favors and 
grants touching import duties on merchandise introduced into the 
United States under whatever condition the concession might be made." 
He promised that the President of Colombia "will use all the influence 
at his command to obtain from Congress at its next meeting such an 
extension of the list of nondutiable merchandise as will justify any 
action which the President may be pleased to take postponing the 
suspension of the free entry" of Colombian coffee and hides into the 
United States. 

The same day Mr. Blaine replied that the Government of the 



12 RECIPROCITY AND COMMERCIAL TREATIES. 

United States could not accept the view of Mr. Hurtado concerning 
the privileges of Colombia under the treaty of 1846, and denied that it 
had any bearing upon the case. He renewed his request for a detailed 
statement of the changes in the Colombian tariff which the President 
of that country had recommended in order that the President of the 
United States might judge whether they would result in especial benefit 
to American products. 

Mr. Hurtado simply replied that he would forward the note to his 
Government at Bogota. 

Therefore, in accordance with the notice given in January, President 
Harrison issued a proclamation on the 15th of March suspending the 
free admission of Colombian products into the United States and reim- 
posing the old duties upon sugar, according to tests, 4 cents per gal- 
lon upon molasses, 3 cents per pound on coffee, and 1J cents per pound 
upon hides. 

The Colombian minister continued to write protests at intervals until 
the reciprocity section was repealed by the act of August 28, 1894. 

HAITI. 

The dutiable provision of section 3 of the tariff act of 1890 was also 
apjjlied to Haiti, the Government of that Republic having indicated no 
disposition to negotiate an arrangement similar to that made with the 
neighboring Republics and colonies. In fact, Haiti was absolutely 
indifferent, and made no response whatever to the advances of Mr. 
Blaine. His letters on the subject to the minister of Haiti in the 
United States, and the communications of the United States minister 
to the Government at Port au Prince were acknowledged, but never 
replied to. 

Therefore, on the 15th of March, 1892, President Harrison issued a 
proclamation suspending the free admission into the United States of 
the products of Haiti, and reimposing upon hides, sugar, molasses, 
coffee, and other articles the duties provided by the tariff act. 

VENEZUELA. 

The Government of Venezuela showed a very cordial desire to engage 
in a reciprocity arrangement when the subject was lirst proposed, and 
the minister from that Republic at Washington negotiated with the 
Department of State the terms of a convention which was agreed upon 
between them, and forwarded it to Caracas for the approval of the 
Venezuelan Government. For reasons which have never been officially 
explained, the President of that Republic suddenly lost his interest in 
the subject, and the combined efforts of the Venezuelan minister in 
Washington and the United States minister at Caracas were never 
able to revive it. He did, however, under pressure from the United 
States, transmit the papers to the Congress of Venezuela, which author- 
ized the appointment of Don Vicente Coranado, minister of finance, as 
a special commissioner to continue the negotiations. As that gentle- 
man manifested no desire or intention to do so, President Harrison, on 
the 15th of March, 1892, under the authority conferred upon him by 
the tariff act of 1890, suspended the free admission of sugar, molasses, 
coffee, and hides from Venezuela, and reimposed upon them the former 
duties. 

RECIPROCITY WITH MEXICO. 

The limitations of the reciprocity section of the tariff act of 1890 
made it impossible to negotiate an arrangement with Mexico, but shortly 
after the assembling of the Fifty-second Congress the Committee on 



RECIPROCITY AND COMMERCIAL TREATIES. 



13 



Foreign Affairs of the House of Representatives reported a resolution 
originally introduced by Mr. Stewart, of Texas (H. Ees. 32, Fifty-second 
Congress, first session) , which provided " that the President of the United 
States is requested to invite the Government of the Republic of Mexico 
to designate three commissioners, who shall meet a like number of com- 
missioners to be designated by the President of the United States, whose 
duty it shall be to negotiate a treaty whereby greater reciprocity in the 
commercial relations between the United States and the Republic of Mex- 
ico shall be established; and whenever it shall be duly certified to the 
President of the United States that the Republic of Mexico has declared 
her willingness to enter into such a treaty, and for that purpose has 
appointed the commissioners before named, he shall appoint three com- 
missioners, who shall have authority to meet those who have been 
designated by the Republic of Mexico, and to negotiate Avith them such 
a treaty; and the commissioners appointed on behalf of the United 
States shall report to the President, who shall lay the report before 
Congress." 

This resolution was accompanied by a report (Report No. 1145, Fifty- 
second Congress, first session), nnanimonsly adopted by the Committee 
on Foreign Affairs, which set forth with great ability and clearness the 
advantages of the policy adopted in the previous Congress in promoting 
the foreign trade of the United States, and recommended its extension 
to include the neighboring Republic of Mexico. It was argued that 
every reason suggested by geographical location, similarity of institu- 
tions, and community of commercial interests would seem to justify all 
reasonable efforts to promote close trade relations with our sister 
Republic. 

THE RESULT OF THE EFFORTS MADE TO EXTEND TRADE. 

That a Government can do much to increase the trade of its people 
by legislative and executive acts is not only demonstrated by the com- 
mercial history of England, Germany, and France, but with equal 
force by the statistics of our own exports to the Latin-American coun- 
tries since the movement to seek markets in their direction began. In 
1885 the exports from the United States to those countries amounted 
to $63,000,000, in 1891 to $90,000,000, in 1893 to $103,000,000, and in 
1895 to $88,000,000. 

The following table shows the exports from the United States to the 
Republics and colonies of Central and South America during those 
years : 



Country. 



1885. 



1891. 



1893. 



1895. 



Argentine Eepublic 

Brazil 

British colonies 

Central America 

Chile 

Colombia 

Cuba 

Dutch colonies 

Fren ch colonies 

Haiti and Santo Domingo 

Mexico 

Pern 

Puerto Rico 

Uruguay 

Venezuela 

Other countries 

Total 



$4, 725. 
7, 317 
9,221. 
2,762 
2,212, 
5, 583, 
9, 006; 

965, 
1, 529 
4, 294 
7,337 

742 
1,569 
1,682 
3,043 
1,014 



,293 
,281 
,531 
,007 
,369 
,160 
,860 
,817 
,008 
,623 
,105 
,205 
,443 
,609 
,170 



820, 035 
120, 246 
100, 719 
813, 316 
145, 625 
182, 644 
224, 888 
028, 056 
061, 993 
983, 564 
969, 620 
399, 991 
155, 234 
076, 575 
784, 956 
546, 054 



$4, 979, 696 
12, 388, 124 
11, 412, 805 

5, 522, 586 
2, 980, 831 
3, 155, 777 

24, 157, 698 
1, 126, 062 

1, 932, 308 

6, 426, 362 
19, 568, 634 

636, 721 

2, 510, 607 
960, 606 

4, 207, 661 
1, 446, 597 



$4, 456, 

15, 165, 

10, 694, 

6, 629, 

2,794, 

2, 596, 

12, 807, 

963, 

1, 675. 

6, 543, 

15, 005, 

630, 

1, 833, 

1, 262, 

3, 740, 

1, 241, 



163 

079 A 

306 

396/^ 

099 

302 

661 ^ 

014 

931 

868 

906^-. 

385 

544 

001 

464 

445 



63, 007, 127 



90, 413, 516 



103, 413, 075 



87, 949, 564 



in. 

EESULTS OF EEOIPEOOITT. 



While the beneficent results of the few reciprocity arrangements that 
were consummated under the authority of the act of 1890 are clearly 
apparent and acknowledged by those who are most deeply interested 
and have the advantage of practical experience, it is to be regretted 
that the brief period that they were in force, extending over a period 
in most cases of less than three years, was not sufficient to fairly test 
their efficacy, especially as the commercial and financial conditions of 
several of the countries and colonies involved were disturbed by unusual 
causes and calamities. 

It is gratifying to know that wherever commercial conditions per- 
mitted there was a substantial gain in the exports of the United States. 
In some cases it was phenomenal, and could be traced directly to the 
advantages secured by the reciprocity arrangements and to the inva- 
sion of the markets by our merchants and manufacturers. 

In other countries where financial depression or civil war prevailed, 
a comparison of commercial statistics will show that the export trade 
of the United States suffered less than that of any other nation, and it 
was a decided vindication of the reciprocity policy that we were able 
to hold our own. The testimony of all the commercial organizations of 
Europe, all the commercial publications, all the diplomatic and consu- 
lar representatives of the European countries in Central and South 
America and the West Indies, justified our own belief in the impor- 
tance of the commercial advantages gained for the United States and 
the peril which threatened their own interests. The debates in the 
British Parliament and the German Eeichstag offered substantial tes- 
timony to the value of the reciprocity policy while it was in force, and 
those that have followed its repeal have more than confirmed it. 

OUR FOREIGN TRADE UNDER RECIPROCITY. 

In 1892 the export trade of the United States reached high-water 
mark. The total was $1,030,278,148, and exceeded by $100,000,000 
that of any previous year. In 1893 there was a decided falling off, 
and the total dropped to $847,665,194. Our exports of domestic mer- 
chandise to Europe alone fell off $189,000,000; to Australasia the decrease 
was $4,300,000, and to Asia $3,367,000. The decrease in our shipments 
to South America was only $483,000, and the increase to the countries 
with which we had reciprocity arrangements was $3,560,515 from the 
total in 1892, and $16,440,721 from the total in 1891, before they were 
ratified. 

The only countries in the entire list of nations and colonies with 
which we have commerce that showed increased exports from the United 
14 



RECIPROCITY AND COMMERCIAL TREATIES. 15 

States in 1893 were tliose with which we had reciprocity arrangements, 
and the Azores Islands, Gibraltar, Greece, Portugal, Kouinania, Spain, 
Turkey, Asiatic Russia, the Philippine Islands, Africa, and the Domin- 
ion of Canada. 

And this in the face of the fact that a financial and commercial 
depression prevailed with unprecedented severity through all the Latin- 
American countries and the West India Islands. In Nicaragua, Hon- 
duras, and Brazil there were revolutionary insurrections which dis- 
turbed the peace, interfered with commerce, paralyzed the industries, 
impaired the purchasing power of the people, and destroyed confidence 
in both public and private credit. Public and private enterprises were 
interrupted and many of them were abandoned, foreign capital was 
withdrawn, banks, mercantile houses, and manufacturers failed or went 
into liquidation; the demand for machinery, implements, railway sup- 
plies, raw materials, and articles of luxury ceased; thousands of work- 
ingmen were thrown out of employment and impressed into the armies, 
while the merchants found themselves with large stocks of imported 
goods on their hands and no customers. 

DEPRECIATION OF LOCAL VALUES. 

Exchange sympathized with existing conditions. The milreis, the 
monetary standard in Brazil, whose nominal value is 54 cents in United 
States gold, was quoted at from 48 to 50 cents in 1890 when the reci- 
procity arrangements were negotiated. At the commencement of 1893 
it was as low as 22 cents, and continued so during nearly the entire 
year. As a result, Brazilian merchants who paid for their goods with 
the local money at par were obliged to sell them for double their former 
value. There was no corresponding increase in the price of native prod- 
ucts, and all foreign products had to be paid for in gold. When the 
reciprocity arrangement with Brazil was negotiated 2J milreis would 
buy a gold dollar. In 1893 it required 4, and often 5. For several 
months the foreign trade of the country was almost entirely suspended, 
and importations of merchandise limited to actual necessity. The 
receipts of the Government for customs were 42 per cent less than they 
were the previous year. But the trade with the United States suffered 
less than that of any other country, and a comparison of our exports 
during that depressed period with those from Great Britain, France, 
and Germany furnishes cause for gratification. 

The general tendency of our trade has since been favorable. The 
impetus gained during the time the reciprocity agreement was in force, 
and the efforts that were made at that time by our merchants and man- 
ufacturers to introduce their goods into Brazil, still show results. The 
exports of Great Britain to Brazil in 1891, when the reciprocity arrange- 
ments were negotiated, were $41,450,195 ; in 1892 they were $39,551,625 ; 
in 1893 they were $38,867,165, and in 1894, $37,629,930. 

In 1891 the exports of France to Brazil were 102,934,8^6 francs ; in 
1892 they were 69,520,091 francs ; in 1893 they were 32,684,912 francs, 
and in 1894, 33,612,072 francs. 

PRIVATE ENTERPRISE SEARCHING FOR NEW MARKETS. 

The results sought by and expected from the reciprocity policy could 
not, however, be accomplished without the enlistment of private enter- 
prise. The Government obtained advantages for the merchants and 
manufacturers, which they were able to enjoy at their pleasure, but 
many serious obstacles to an increase of trade remained, which could 



16 RECIPROCITY AND COMMERCIAL TREATIES. 

only be overcome by individual zeal and intelligence. By the arrange- 
ments negotiated a population of more than seventeen millions of 
people were enabled to purchase the products of the United States at 
prices very largely below what they had previously been compelled to 
pay, and to place these products in their reach was the province of the 
individual rather than the Government. The merchants and manufac- 
turers of Europe, by a long and careful study of the tastes and require- 
ments of consumers in Central and South America and the West Indies, 
by the establishment of agencies, the granting of liberal credits, and 
intelligent advertising, have obtained control of the trade, and can not 
be expected to retire from a large and lucrative market without resist- 
ance. That resistance was seriously felt in the negotiation of the reci- 
procity agreements and was encountered in an even greater degree 
by those who attempted to take advantage of the opportunities thus 
secured. 

But the fact that the efforts of the Government were appreciated and 
reenforced by those for whose benefit they are intended was fully demon- 
strated by the postal statistics and the passenger lists of outgoing 
steamers, and are confirmed by the replies of manufacturers and export 
merchants to the inquiries of the committee. Commercial travelers from 
the United States were to be found in every city of this hemisphere 
south of the Gulf of Mexico and the Bio Grande, and the mails forwarded 
in that direction were laden with catalogues, price lists, and circulars 
intended to bring to the attention of importing merchants the superiority 
of American goods; and they still continue, notwithstanding the repeal 
of the reciprocity arrangements, but under far less favorable circum- 
stances. 

EFFECT OF THE REPEAL OF THE RECIPROCITY POLICY. 

J. A. Dennis, manufacturer's export agent, New York, in reply to the 
inquiries of the committee, says: 

By correspondence, distribution of samples, and by salesmen I increased my sales 
about 100 per cent in six years, mostly in tlie American countries and Japan. The 
reciprocity treaties were exceedingly favorable to the export trade of the United 
States. The effect of their repeal on my business is shown by the following figures : 

Increased over previous year : Per cent. 

1890 35 

1891 69 

1892 29 

1893 2 

Decreased from previous year: 

1894 20 

1895 3 

I am strongly in favor of any measure that will renew the reciprocity treaties. 
RECIPROCITY SHOULD NOT BE A POLITICAL POLICY. 

It is difficult to understand why a patriotic citizen should oppose, 
condemn, or counteract any measure that may promote the prosperity 
of his community. There will always be honest differences of opinion 
as to ways and means, and we expect to be confronted with obstacles 
that foreign rivals may place in our way; but it would seem that any 
effort or measure to facilitate the placing of our products in the markets 
of the world is entitled to encouragement instead of opposition; and 
the testimony that is herewith presented from the commercial and 
industrial organizations of the country, from manufacturers and mer- 
chants, from stock growers and representatives of the agricultural 



RECIPROCITY AND COMMERCIAL TREATIES. 17 

interests, without reference to political opinions or party association, 
is almost unanimous in urging the revival of the reciprocity policy 
which promised so much improvement in our export trade. 

That policy, when it was tirst proposed, was declared to be destruc- 
tive to the interests of the manufacturers and agriculturists of this 
country, yet, after an experiment of about three years while it was in 
operation, and an interval of less than two years since its repeal, with 
one voice they demand its revival and permanent incorporation in the 
legislation of Congress. 

As one of the commercial organizations observes in reply to the com- 
mittee's circular of inquiry: 

It is hard, to conceive how anyone interested in the healthy extension of the com- 
mercial advantages of our country, or in the prosperity of American industry, can 
answer your third inquiry except with a most positive appeal that all party preju- 
dices may on this great question be at once laid aside and make way for the commer- 
cially and industrially sound principle of reciprocity, fairly guarded hy the special 
needs of developing industries, in all future tariff legislation; and, though legislators 
he more apt to dictate the generality of delegated authority in the premises, no tariff 
law should he enacted, whether for revenue only or for revenue with incidental pro- 
tection, that did not carry with it the plenary authority or direction to the Execu- 
tive to negotiate the most advantageous reciprocity possible with all the foreign 
nations possible, but especially with the nations to the south of us. 

The next critic saw in it an infringement of the constitutional rights 
of the Executive and a surrender of the prerogatives of the legislative 
department of the Government, but that criticism has been answered 
by a decision of the Supreme Court of the United States. 

CONSTITUTIONALITY OF RECIPROCITY LEGISLATION. 

The constitutionality of the reciprocity section of the tariff act of 
1890 was decided by the Supreme Court of the United States in the 
case of Fields v. Clark, appealed from the circuit court of the United 
States for the northern district of Illinois, and in the cases of Boyd v. 
United States, and Sternbach v. The United States, appealed from the 
circuit court of the United States for the southern district of New 
York. The decision was rendered February 29, 1892, and appears on 
page 649 et seq., vol. 143, United States Keports, October term, 1891. 

The plaintiffs in error contended that the third section of the act of 
October 1, 1890, usually known as the reciprocity section, was uncon- 
stitutional, on the ground that Congress has no right to delegate to the 
President both legislative and treaty-making powers. On behalf of 
the United States it was argued that legislation of this character is 
sustained by early decisions by the United States Supreme Court, and 
by the practice of the Government for nearly a century. 

The court held that the contention of the United States was sustained 
by numerous decisions and precedents in legislation, beginning as far 
back as the Administration of Washington, and continuing as late as 
1884. when, in execution of section 4228 of the Kevised Statutes, Presi- 
dent Arthur issued a proclamation declaring that on and after the 1st 
day of March, 1884, so long as the products of and articles proceeding 
from the United States, imported into the islands of Cuba and Puerto 
Rico, should be exempt from discriminating customs duties, any such 
duties on the products of and articles proceeding from Cuba and Puerto 
Rico under the Spanish flag should be suspended and discontinued. 
(23 Stat., 835.) President Cleveland, by proclamation of October 13, 
18SC, revoked this suspension, upon the ground that higher and dis- 
criminating duties continued to be imposed and levied in the ports 
H. Eep. 2263 2 



18 RECIPROCITY AND COMMERCIAL TREATIES. 

named upon certain produce, manufactures, or merchandise imported 
into them from the United States and from foreign countries in vessels 
of the United States than were imposed and levied on the like produce, 
manufactures, or merchandise carried to those ports in Spanish vessels. 
(24 Stat., 1028.) 

OPINION OF THE SUPREME COURT OF THE UNITED STATES. 

"It would seem to be unnecessary," reads the opinion of the court, 
"to make further reference to acts of Congress to show that the author- 
ity conferred upon the President by the third section of the act of 
October 1, 1890, is not an entirely new feature in the legislation of Con- 
gress, but has the sanction of many precedents. While some are 
stronger than others in their application to the case before us, they all 
show that, in the judgment of the legislative branch of the Govern- 
ment, it is often desirable, if not essential for the protection of the 
interests of our people against the unfriendly or discriminating regula- 
tions established by foreign governments in the interests of their people, 
to invest the President with large discretion in matters arising out of 
the execution of statutes relating to trade and commerce with other 
nations. 

"That Congress can not delegate legislative power to the President 
is a principle universally recognized as vital to the integrity and main- 
tenance of the system of government ordained by the Constitution. 
The act of October 1, 1890, in the particular under consideration, is not 
inconsistent with that principle. It does not, in any real sense, invest 
the President with the power of legislation. For the purpose of secur- 
ing reciprocal trade with countries producing and exporting sugar, 
molasses, tea, coffee, and hides, Congress itself determined that the pro- 
visions of the act of October 1, 1890, permitting the free introduction 
of such articles, should be suspended as to any country producing and 
exporting them that imposed exactions and duties on the agricultural 
and other products of the United States which the President deemed — 
that is, which he found to be — reciprocally unequal and unreasonable. 
Congress itself prescribed, in advance, the duties to be levied, collected, 
and paid on sugar, molasses, coffee, tea, and hides produced by or 
exported from such designated country while the suspension lasted. 

"Nothing involving the expediency or the just operation of such leg- 
islation was left to the determination of the President. The words 'he 
may deem, 7 in the third section, of course implied that the President 
would examine the commercial regulations of other countries producing 
and exporting sugar, molasses, coffee, tea, and hides and form a judg- 
ment as to whether they were reciprocally equal and reasonable, or the 
contrary, in their effect upon American products. But when he ascer- 
tained the fact that duties and exactions reciprocally unequal and un- 
reasonable were imposed upon the agricultural or other products of 
the United States by a country producing and exporting sugar, molas- 
ses, coffee, tea, and hides it became his duty to issue a proclamation 
declaring the suspension as to that country, which Congress had deter- 
mined should occur. He had no discretion in the premises, except in 
respect to the duration of the suspension so ordered. But that related 
only to the enforcement of the policy established by Congress. As the 
suspension was absolutely required when the President ascertained the 
existence of a particular fact, it can not be said that in ascertaining 
that fact and in issuing his proclamation in obedience to the legislative 
will he exercised the function of making laws. 



RECIPROCITY AND COMMERCIAL TREATIES. 19 

"•Legislative power was exercised when Congress declared that the 
suspension should take effect upon a named contingency. What the 
President was required to do was simply in execution of the act of Con- 
gress. It was not the making of law. He was the mere agent of the 
law-making department to ascertain and declare the event upon which 
its expressed will was to take effect. It was a part of the law itself as 
it left the hands of Congress that the provisions, full and complete in 
themselves, permitting the free introduction of sugars, molasses, coffee, 
tea. and hides from particular countries should be suspended in a given 
contingency, and that in case of such suspensions certain duties should 
be imposed." 

" 'The true distinction,' as Judge Eanney, speaking for the supreme 
court of Ohio, has well said, 'is between the delegation of power to 
make the law, which necessarily involves a discretion as to what it shall 
be, and conferring authority or discretion as to its execution to be exer- 
cised under and in pursuance of the law. The first can not be done; 
to the latter no valid objection can be made.'" 

THE DISSENTING OPINION. 

There was a dissenting opinion from Mr. Chief Justice Fuller and 
Mr. Justice Lamar, which was rendered by the latter, although both 
concurred in the judgment of the court. They held that the assertion 
that no part of the legislative power can be delegated by Congress to 
any other Department of the Government, executive or judicial, u is an 
axiom in constitutional law, and is universally recognized as a princi- 
ple essential to the integrity and maintenance of the system of govern- 
ment ordained by the Constitution. The legislative power must remain 
in the organ where it is lodged by that instrument. We think that the 
section in question does delegate legislative power to the executive 
department, and also commits to that department matters belonging 
to the treaty-making power, in violation of paragraph 2 of the second 
section of Article II of the Constitution." 



THE ATTITUDES OF FOREIGN GOVERNMENTS. 

After Congress had given the President authority to negotiate com- 
mercial arrangements under section 3 of the tariff act of 1890, we 
were told that foreign nations would resent the attempt of this Gov- 
ernment to interfere with their customs laws. But the protests and 
remonstrances that were offered by Germany, Austria, Guatemala, and 
other countries when the arrangements were repealed, and the retalia- 
tory measures on their part which followed, is sufficient to demonstrate 
their satisfaction with measures that added to their prosperity as well 
as to ours. The verdict that will be found in the answers that were 
received to the inquiries sent out by this committee should convince 
any skeptic that the reciprocity policy was not only a very simple but 
a very sensible thing. 

The National Live Stock Exchange, in formal resolutions, declares 
that reciprocity "is always favorable to the promotion of the foreign 
commerce of the United States, and from our standpoint is the kind of 
legislation needed to increase our foreign commercial relations, and 
the legislator who advocates reciprocity is entitled to all the public 
honors that can be bestowed by the producers throughout the United 
States." 



20 RECIPROCITY AND COMMERCIAL TREATIES. 



THE ATTITUDE OF THE IRON AND STEEL INDUSTRY. 

The attitude of the iron and steel industry toward the reciprocity 
policy was denned to the committee by Mr. John W. Gates, president 
of the Illinois Steel Company, one of the largest manufacturing corpora- 
tions in the world, which has $35,000,000 of capital invested in 25 fur- 
naces, 15 mills, iron mines, coal mines, and coke ovens, employs 10,282 
men, and has an annual output valued at from twenty to thirty million 
dollars. Until the enactment of the tariff law of 1890 this company sold 
its product exclusively in the United States, but under the reciprocity 
arrangements sought and secured a foreign market, which promised 
well, but as soon as they were terminated this trade "became practically 
nothing." 

Mr. Gates gave some striking information about the decline in prices 
during the last six years. In 1890 the product of his company was 
450,000 tons, which sold for $25,000,000. In 1895 it was 875,000 tons, 
and sold for $22,000,000. 

During the last three years, upon an investment of $35,000,000 cap- 
ital, the profits of the company were only $300,000. 

Mr. Gates submitted a letter addressed to him under date of March 
18 by the New York manager of the Consolidated Wire and Steel Com- 
pany, which contains some pertinent and important information. The 
manager wrote: 

Referring to the question of advantages to American manufacturers under the 
reciprocity treaties, we could say that from the time these treaties were put into effect 
with the Latin- American countries, and until their termination, our trade in barb 
wire with those countries increased rapidly and uniformly, and in addition to the 
trade in barb wire we were able for the first time in the history of oar company — 
which covers more than eighteen years — to introduce to a certain extent plain wire 
and wire nails, and everything indicated a continued expansion of the volume of our 
business had the conditions remained the same. As soon, however, as these treaties 
were abrogated by the adoption by the United States of another tariff law, our trade 
with the countries which it affected became practically nothing. 

A similar condition of affairs is true, in a greater or less degree, with all other 
countries with which the United States had similar arrangements. In general, we 
may say that the reciprocity treaties were absolutely and unqualifiedly of great 
advantage to American manufacturers, and we would be very glad indeed to see 
either the same or similar ones reinstated, because under no other known set of con- 
ditions can American manufacturers pay American prices for labor and material and 
successfully meet the competition of foreign manufacturers. 






IV. 

PEOTESTS AGAINST THE EEPEAL OE EEOT 

PKOOITY. 



The repeal of the reciprocity section and the restoration of the duty 
on sugar did not result from any popular demand or commercial neces- 
sity. There was no petition, memorial, request, or suggestion, formal 
or informal, from any commercial or industrial association, or company 
or individual demanding either. It was simply a legislative necessity 
in order to accomplish u tariff reform." 

PROTESTS FROM GERMANY. 

Formal protests were received from Germany, Guatemala, and other 
countries, but no attention was paid to them. 

In July, 1894, while the bill was pending in the Senate, the German 
ambassador at Washington, under instructions from his Government, 
tiled the following protest with the Secretary of State, which was abso- 
lutely ignored : 

Imperial German Embassy, 

Washington, July 16, 1894. 

With regard to the levying of an identical ad valorem duty of 40 per cent on sugar 
from all countries, with the addition of one-tenth of a cent per pound on sugar ahove 
No. 16, Dutch standard, the German Government will refrain from making any obser- 
vations, although German sugar, since it is of better quality than the inferior grades 
of sugar from the competing'countries, is thereby placed at a disadvantage, as com- 
pared with those inferior grades. The German Government must, however, regard 
the discrimination against German goods by levying a duty thereon of one-tenth of 
a cent additional per pound as an injury to the German sugar trade which can not 
be reconciled with the treaty stipulations now in force between Germany and the 
United States. The payment of a bounty is a purely domestic matter, and is not to 
he considered in connection with the establishment of duties between States which, 
like Germany and the United States, sustain the relation of most-favored nations 
toward each other. The United States might, for instance, with the same reason 
amort that German manufacturers in any particular branch of industry paid lower 
taxes than elsewhere, and then, in order to bring about a so-called equalization, levy 
a discriminating duty on the German product concerned on its importation into an 
American port. It is quite evident that such a view of the case would render the 
most-favored-nation clause altogether illusory. 

While the Imperial Government can not thus do otherwise than regard the addi- 
tion of one- tenth of a cent per pound as being at variance with the treaty, the 
German sugar producers declare, on the basis of accurate computations made by 
them, that this addition would in fact drive out German productions from the Amer- 
ican market. The addition, moreover, falls more heavily upon the sugar industry 
of Germany than it does upon that of other bounty-paying countries, since the Ger- 
man bounty, which in the year 1897 is to be discontinued entirely, is by no means as 
high as those of Austria and France, and does not even approximately compensate 
the exporter for the loss entailed upon him by the additional duty. 

The excitement which prevails in German agricultural and manufacturing circles 
on account of this inequitable treatment of a German production is the more vehe- 

21 



22 RECIPROCITY AND COMMERCIAL TREATIES. 

ment and the less easily resisted, inasmuch as it is generally believed that the United 
States, in the agreement of August 22, 1891, guaranteed exemption to Germany from 
the duty on sugar in return for the concession of the conventional duties on Ameri- 
can agricultural products and the removal of the restrictions on the importation 
of swine. 

However fully the Imperial Government is convinced that the passage of the reso- 
lution fixing the duty on sugar, which has been adopted by the Senate, is not to be 
considered as an act unfriendly to Germany, yet it is so considered in mauy quarters. 
The Imperial Government is consequently at present unable to say whether it will 
be possible for it, in view of the increasing agitation on account of the proposed 
measure, to restrain the interested parties from demanding retaliatory action, which 
the Imperial Government, owing to the friendliness and fairness that characterize 
its intercourse with the United States, desires to avoid. 

Saurma. 

SECOND REMONSTRANCE FROM GERMANY. 

After the passage of the tariff bill containing the discrimination 
against German sugar the ambassador from that Empire filed the fol- 
lowing formal protest with the Secretary of State: 

Imperial German Embassy at Washington, 

Washington, August 28, 1894. 
Mr. Secretary of State: 

I have the honor to communicate to your excellency the following, in pursuance 
of instructions received from His Majesty the German Emperor, King of Prussia: 

In the act which took effect to-day, entitled "An act to reduce taxation, to pro- 
vide revenue for the Government, and for other purposes/' there appears in Schedule 
E, 182-|, the provision that sugar from countries that pay an export bounty is liable 
to an additional duty of one-tenth of a cent per pound. 

In the course of the negotiations which took place in the Congress of the United 
States of America in connection with the tariff question, the Imperial Government 
took the liberty to point to the fact that such a measure could not be reconciled with 
the most-favored-nation clause which governs the economic relations of the two 
countries, but that it was rather a differentiation whereby the exportation of Ger- 
man sugar to the United States of America was more unfavorably treated than that 
of several other European countries. 

The expectation that (as might have been anticipated from the long-standing rela- 
tions of amity between the two nations) these considerations would not be without 
influence upon the decisions of the legislative bodies of the United States has, unfor- 
tunately, not been realized. 

The Government of His Majesty the Emperor is consequently once more compelled 
to repeat that, after most careful consideration, it is convinced that the levying of 
an additional duty on German sugar is in harmony neither with existing stipulations 
nor with those tendencies which the exchange of notes of August 22, 1891, called 
forth. 

The granting of an export bounty on sugar is a domestic affair of Germany. 

An intent not to fulfill its treaty stipulations, based upon the most-favored-nation 
clause, can not, therefore, be inferred from this by any other country. 

It is needless to dwell upon the fact that the view which has been manifested by 
the legislative bodies of the United States would render the effects of the most- 
favored-nation clause illusory, and that it would expose the contracting parties 
to the adoption of arbitrary duties, which it is the object of treaties containing a 
most-favored-nation clause to prevent. 

The Imperial Government feels conscious that it has always conscientiously ful- 
filled the duties rendered incumbent upon it by the most-favored-nation clause, and 
it consequently deems itself authorized to expect similar action on the part of the 
United States of America. 

The Government of His Majesty the Emperor is consequently compelled to protest 
against the discriminating provisions of the act of August 28, 1894. 

I avail myself, etc., Saurma. 

IMPORTANCE OF THE GERMAN AGREEMENT. 

In some respects the most important of the several commercial agree- 
ments negotiated under the authority of the third section of the tariff 
act of 1890 was that with the German Empire. It removed the embargo 
that had been placed upon American products in 1880, admitted free a 



RECIPROCITY AND COMMERCIAL TREATIES. 23 

number of agricultural products and many more at a greatly reduced 
rate of duty. For twelve years the Government of the United States 
had been trying to accomplish this by diplomatic negotiations; but it 
had always failed until the adoption of the reciprocity policy enabled 
the Secretary of State to oft'er the Germans a compensation which they 
deemed equivalent, in the free admission of their beet-root sugar to the 
United States. 

The arrangement was not sought by them, but by us, and they 
responded with great reluctance, because of the rapid increase of the 
agrarian movement in Germany, which demanded high protective duties 
upon all agricultural imports. 

In the face of these facts and the formal protest that was entered by 
the German ambassador the Fifty- third Congress proceeded to ignore 
the treaty stipulations and the commercial interests of the United 
States without reflection and with no motive except to repeal the legis- 
lation of the Fifty-first Congress. The committee and the Senate were 
warned that the commercial agreements which had been entered into 
under the act of 1890 were solemn compacts between this and friendly 
nations which should not be carelessly set aside, and could not be ter- 
minated in the way proposed without national dishonor. They were 
reminded that the Government might properly ask jjermission to with- 
draw from the compacts, and be released from its obligations according 
to the custom of civilized nations. Such a method would be a serious 
blow to the commerce they had done so much to promote and encour- 
age, but would preserve the honor of the nation. But in their impet- 
uosity the advocates of tariff reform were deaf to reason and remon- 
strance. 

RETALIATION BY GERMANY. 

Such an offense as was committed by the passage of the tariff 
act of 1894, if committed by any individual or a corporation, would be 
followed by a suit for damages, but when committed by one nation 
against another, the usual recourse is a declaration of war or commer- 
cial retaliation. The Government of Germany adopted the latter alter- 
native, and proceeded to inaugurate a commercial warfare against the 
United States which has demoralized our commerce with that country 
and been a serious blow to the export trade. 

Kor is it confined to the German Empire. Sympathetic retaliation 
has followed from Austria, Belgium, Holland, and Denmark, until now 
our agricultural products are practically shut out of the markets of 
northern Europe, and the result is felt by every man who raises a 
bushel of wheat or corn, or who sends a hog or steer to the stock yards. 
Thus our exports of corn to Europe dropped from 52,000,000 bushels 
in 1891 to 23,000,000 bushels in 1895. Our exports of wheat dropped 
from 81,000,000 bushels to 71,000,000. There was a loss in the exports 
of flour of 1,700,000 barrels, and other interests suffered accordingly. 

PRESIDENT CLEVELAND ON GERMAN RETALIATION. 

Many serious embargoes and restrictions have been placed by Ger- 
many upon American products, and even our insurance companies 
were prohibited from doing business in the German Empire as a part 
of the retaliation policy. 

So serious was the result and so great has been the suffering of 
American commerce that the President of the United States, in his 
annual message to Congress, called attention to the matter and dis- 



24 RECIPROCITY AND COMMERCIAL TREATIES. 

cusses the propriety of inaugurating a movement of counter retalia- 
tion, but lie forgets to explain that our commercial relations with Ger- 
many were perfectly satisfactory, hopeful, and profitable to the people 
of the United States until the Fifty-third Congress arbitrarily revoked 
the reciprocity arrangement which exchanged our agricultural products 
for her beet-root sugar; that this action was taken in violation of the 
usages of international etiquette, and imposed upon the largest and 
most important article of export from Germany a discriminating duty 
that benefited nobody except the sugar trust, which at that very hour 
the Attorney- General of the United States was prosecuting in the 
courts of Philadelphia as a menace to the welfare of otfr people. 

Mr. Cleveland says in his message that " in our dealings with other 
nations we ought to be openhanded and scrupulously fair. This should 
be our policy as a producing nation;" and he adds, "and it plainly 
becomes us as a people, who love generosity and the moral aspects of 
national good faith and reciprocal forbearance." 

If these words had been addressed to the Fifty-third Congress they 
would have been more appropriate, and, if heeded by that Congress, 
would have saved to the producers of our agricultural products millions 
of dollars. 

PROTESTS FROM AUSTRIA AOAINST THE REPEAL. 

The minister from Austria made a similar protest against the restor- 
ation of the duty on sugar and the imposition of a differential duty 
upon imports from that country as a violation of treaty stipulations 
between the two countries, not only applying to the commercial arrange- 
ments negotiated under section 3 of the tariff act of 1890, but also in 
violation of article 3 of a treaty concluded between Austria and the 
United States in 1842, which provides that goods imported into the 
United States from Austria-Hungary shall be subjected to no discrimi- 
nation in respect to duty. 

PROTEST FROM GUATEMALA. 

The minister of Guatemala not only in a written memorandum, but 
in personal interviews, remonstrated against the repeal of the reci- 
procity arrangement with that country, on the grouncl that large sums 
of money had been invested by his countrymen in plantations and in 
machinery for the production of sugar with a view to enjoying the ben- 
efits of the American markets; that this large outlay would not have 
been incurred had they supposed that the Government of the United 
States contemplated an early abandonment of the reciprocity policy 
and the imposition of a tax upon Guatemala sugar; that the ability of 
Guatemala to produce sugar had been demonstrated ; that the bill before 
Congress involved a discrimination against Guatemala in that it pro- 
vided for the free admission of Hawaiian sugar, produced by coolie and 
contract labor, and that financial ruin would befall the sugar producers 
of Guatemala should the bill become a law aud a duty be imposed 
upon sugar imported from that country into the United States. 

THE PROTEST FROM BRAZIL. 

Mr. Mendonca, the Brazilian minister, who had negotiated the first 
reciprocity arrangement under the act of 1890, called the attention of 
the Secretary of State, in a most courteous manner, to the fact that 
the compact with his country provided, by its own terms, a method for 



RECIPROCITY AND COMMERCIAL TREATIES. 25 

its termination upon six months' notice by either Government, and said 
that his Government expected that it would be observed. 

Secretary Gresham responded that all the arrangements contracted 
under the tariff act of 1800 were repealed by the tariff act of 1894 
without regard to their stipulations, and reminded Mr. Mendonca that 
the act of 1890 "did not contemplate the creation of a condition of 
things which it would not be within the power of this Government at 
any time to alter." 

REMONSTRANCES FROM OTHER COUNTRIES. 

The Governments of Nicaragua, Gosta Eica, and Santo Domingo 
entered modest protests, and expressed their regrets at the termination 
of arrangements which had been highly satisfactory to them, and, as 
they supposed, profitable to the United States. It was not expedient, 
if it had been possible, for any of our neighboring republics to show 
resentment; but even if they were able to do so the difference in pop- 
ulation, wealth, and military strength between them and the United 
States should have made us the more generous and scrupulous in 
observing the obligations we had incurred. 

Under these reciprocal agreements the United States stood in a 
position to command and control its share of the trade of the tropical 
portion of the southern continent, and it would have been possible to 
negotiate similar arrangements with other countries. All of the arti- 
cles involved, except lead ore, were placed upon the free list by the act 
of 1894, without asking anything in return or giving any opportunity 
by diplomatic negotiation to secure valuable concessions for the benefit 
of our farmers a"nd mechanics. Thus that measure not only repudiated 
and rejected all the advantages that had been obtained for our products 
in the southern nations, but threw away the prospect of obtaining 
additional markets for our surplus products. 

MAGNITUDE AND VARIETY OF THE INTERESTS INVOLVED. 

Nearly every city and town in the United States has a direct and 
immediate interest in the extension of this trade. The men who make 
the articles of commerce do not often know the destination of their 
wares, except in cases of large contracts or consignments. The South 
American trade, being conducted at present almost exclusively by com- 
mission men, is peculiar in this respect. 

Not long ago a gentleman interested in the promotion of our export 
trade to South America took the trouble to trace to its source every 
article of merchandise that composed the cargo of a vessel bound 
from New York to one of the southern republics. The result was 
astonishing. 

He found that the city of Chicago furnished to this cargo axle grease, 
link belts, folding sewing machines, boilers, car axles, mining machinery, 
hardware, agricultural implements, machinery, office supplies, car- 
riages, wagons, carts, sewing machines, heavy hardware, furniture, pro- 
visions, electrical goods, cutlery, barbed wire, and reapers. 

Other towns in Illinois contributed to the cargo as follows : Belvidere, 
sewing machines ; Canton, agricultural implements; Carpentersville, 
copying presses; Freeport, buggies; Geneseo, road carts; Moline, 
plows; Peoria, bolts; Pekin, agricultural implements; Kockford, fur- 
niture and patent foot machinery; Eock Island, plows; Sandwich, 
reapers, mowers, agricultural implements, windmills, etc.; and Ster- 
ling, agricultural implements. 



26 RECIPROCITY AND COMMERCIAL TREATIES. 

The towns of Indiana furnished the following: Evansville, edge 
tools; Indianapolis, office desks; Mishawak a, pulleys; Eichmond, grain 
drills, etc.; Shelby ville, cabinets; and South Bend, plows, wagons, and 
carriages. 

The towns of Iowa furnished the following: Dubuque, windmills, 
etc., and Ottumwa, woodwork. 

The towns of Michigan furnished the following: Detroit, fans and 
blowers; Grand Rapids, furniture; Three Rivers, velocipede cars ; and 
White Pigeon, foot and hand power machinery. 

Those of Minnesota as follows : St. Paul, prepared coffee, and Still- 
water, agricultural implements. 

The towns of Ohio furnished the following: Alliance, steel castings; 
Bucyrus, grain-cleaning machinery; Cincinnati, brass goods and car- 
riages; Canton, plows; Cleveland, steam gauges and bellows; Dayton, 
sewing machines, bronze castings, ice machines, agricultural imple- 
ments, carriage wheels and hubs, file cases, and filters; Defiance, 
machinery; Hamilton, steam pumps; Piqua, corrugated iron; San- 
dusky, whipstocks; Springfield, engines; Toledo, wagons; Wilmington, 
auger bits; Mansfield, agricultural implements, machinery, and plumb- 
ers' materials. 

The following were contributed by towns in Wisconsin: Madison, 
printing presses ; Milwaukee, trunks, machinery, furniture, ice machine, 
and beer; Racine, wagons, machinery, furniture, engines, yachts, trunks, 
wagons, and carriages; and Sheboygan, furniture. 

Alabama: Bessemer, cast-iron pipe. 

Missouri: Kansas City, contracting machinery; St. Louis, general 
merchandise, glass and crockery, and drugs. 

Pennsylvania: Harrisburg, bookbinders' machinery; Pittsburg, gal- 
vanized sheet iron, locomotives, and chains. 

Other cities contributed to this cargo the following articles: Porta- 
ble road-making machines, gas engines, portable electric motor' for 
drilling, boots and shoes, baseball bats, canned beef, brick-making 
machines, patent evaporator, patent cereals, chairs, cheese, clocks, cloth- 
ing, condensed milk, buckets, canned goods, corn meal, wool compres- 
sors, cotton-seed oil, dairy utensils, distillery plant, electric-light plant, 
passenger elevator and machinery, furniture and vegetables, seed, har- 
ness, hay-baling machine, hosiery, ice factory and cold-storage plants, 
knitting machine, oatmeal, ornamental tiles, pickles, pressed bricks, 
plant, saddletrees, soap, spokes and hubs for wheels, starch, laundry 
machinery, strawboards, watches, wire screens, wooden ware, and mate- 
rials for repairing watches. 



V. 

EFFECT OF RECIPROCITY UPON THE EX- 
PORTS OF BREADSTUFFS. 



The milling and live-stock industries seem to have suffered more by 
the revocation of the reciprocity arrangements than any other inter- 
ests, and from them have come the most urgent appeals for a resto- 
ration of the policy, a renewal of the agreements, and the application 
of retaliatory measures against the unjust discriminations and unnec- 
essary restrictions that embarrass their trade with foreign customers. 
One of the largest manufacturers of flour in the United States, and an 
important official of a national milling association, asserted to your 
committee that the loss to the merchant millers of this country occa- 
sioned by the repeal of the reciprocity section of the tariff act of 1890 
was, at least, 810,000,000 a year, or 4,000,000 barrels of flour, to pro- 
duce which would require the continual operation of 133 flouring mills 
with a capacity of 100 barrels per day each for a year. 

It is claimed that the milling interest is the largest of any of the 
manufactures of the United States. In 1890 it paid $434,152,290 for ma- 
terial, and the total product that year reached a value of $573,971,474, 
which was $83,000,000 more than the value of the total iron and steel 
produced in the United States, $110,000,000 more than the lumber, 
$246,000,000 more than the cotton goods, and $380,000,000 more than the 
value of the output of the woolen mills. 

THE WHEAT CONSUMED AT HOME AND THAT EXPORTED. 

The mills of the United States are able to manufacture 400,000 bar- 
rels of flour daily when they are running at full time, which, in two 
hundred and fifty operating days, would amount to 100,000,000 barrels 
of flour, and require nearly 500,000,000 bushels of wheat. But the 
average annual output of flour does not exceed 55,000,000 or 60,000,000 
barrels, which proves that the mills are not employed more than half 
their time. 

The average wheat crop in this country is about 460,000,000 bushels, 
of which an average of 100,000,000 is exported, and 110,000,000 is 
required for seed and to feed stock, leaving about 250,000,000 bushels 
to be consumed for flour, or about one-half of the amount that would 
be required if the mills were running to their full capacity. 

The exports of wheat are very irregular, and depend largely upon the 
volume of the crops in other countries. The exports of wheat jumped 
from 55,000,000 bushels in 1891 to 157,000,000 bushels in 1892; then 
dropped to 117,000,000 bushels in 1893, to 88,000,000 bushels in 1894, 
and finally to 76,000,000 bushels in 1895. This irregularity is, of course, 
a great embarrassment to the producer and to the milling interest, and 
causes wide fluctuations in prices. 

27 



28 RECIPROCITY AND COMMERCIAL TREATIES. 



CONDITION OF THE MILLING INDUSTRY. 

There are 18,470 mills in the United States according to the last 
census, although the number and capacity has been largely increased 
since 1890; and they are scattered over the entire country, being found 
in 2,800 different counties. Almost every Congressional district in the 
land is represented by from 1 to 100 mills. To-day, according to the 
testimony of the representatives of the Millers' Association, 2,000 
mills are absolutely idle, and the most of the remainder are running on 
half time. 

According to the evidence, the manufacture of flour has decreased 
considerably during the last three years, although the population of the 
United States, according to the estimates of the Bureau of Statistics, 
has increased from 62,622,000 in 1890, to 69,753,000 in 1895. 

The representative of one of the largest milling companies in the 
country writes as follows : 

We have two less establishments than we had four years ago. One large mill was 
lost by fire, which we have not rebuilt, and to-day we could not sell the properties 
we own for 50 per cent of their cost or what we could erect them for. We believe 
that this will apply to almost any mill in the United States that is not exceptionally 
well situated; and for the past three years we have not run our mills over 60 per cent 
of the time that we ran them six years ago. We do not believe that over 50 per 
cent of the wheat produced in this country can be absorbed in our domestic markets. 

The present cost of producing flour is only about 65 per cent of what 
it was six years ago. Wages have been reduced ; the cost of all milling 
supplies, machinery, and repairs is much lower than it was then, and 
the prices of raw material and transportation are fully 25 per cent 
lower. The last two items, however, are entirely controlled by the com- 
petition of wheat producing countries abroad and the volume of the 
crops in this country. 

The millers who have testified before this committee assert that in 
1892 they easily got a profit of from 10 to 15 cents a barrel over and 
above the cost of production, while at present they consider 5 cents a 
barrel a fair profit, and are glad to get 3 cents. It is asserted also that 
since the reciprocity arrangements were repealed so much flour has 
been thrown back upon this country from the Cuban and Brazilian 
markets that the average miller, who is not exceptionally well located 
in relation to the domestic markets, has been glad to run his mill with- 
out loss. 

The total production of wheat in the United States for the year 1895 
shows an increase of 67,000,000 bushels over the previous year, although 
there was a falling off of about 1,600,000 barrels in the exports of flour, 
when there ought to have been a natural increase of 13,000,000 barrels 
to have absorbed the surplus wheat. The object of the millers is to 
turn the surplus wheat into flour and export the flour in order that the 
labor and the profit of the manufacture maybe enjoyed in this country. 

VALUE OF RECIPROCITY TO THE FLOUR TRADE. 

There is no question as to the value of reciprocity arrangements to 
the millers. There is no industry which testifies so earnestly in their 
favor, for it felt the effect more fully and directly than any other branch 
of trade. 

The exports of flour in 1891, the year previous to the negotiations of 
the arrangements, were 11,314,304 barrels; in 1892, the year after they 
were negotiated, they were j 5.196,769 barrels; in 1893, they were 
16,620,339 barrels; in 1894, they were 16,859,533 barrels, and then, in 



RECIPROCITY AND COMMERCIAL TREATIES. 29 

1895, after the treaties had been revoked, the exports dropped to 
15,268,892 barrels. 

The Millers' Association of Minnesota, in reply to the inquiries of the 
committee, furnish this convincing testimony : 

First. The effect of the reciprocity arrangements negotiated by the Government 
nnder authority of the tariff act of 1890 "was favorable to the furthering and enlarg- 
ing of our business with the countries affected. Take, for example, Cuba. The 
flour shipments to that country during the years 1890-94 were as follows: 

liarrels. Barrels. 

1890 225,820 1893 616,406 

1891 114.447 1894 662,248 

1892 366,175 

Which shows a gratifying increase during the years the treaty was in effect, our flour 
during that time paying a duty of 88 cents per barrel. 
The trade with Brazil during these years also shows a substantial increase, being — 

Barrels. Barrels. 

1891 722,367 1893 837,639 

1892 918,447 | 1894 920,869 

While our shipments to Germany show a still larger percentage of increase, being — 

Barrels. 

1893 209,719 

1894 286,229 



Barrels. 

1891 8,864 

1892 54,277 



Second. The effect of the repeal of the tariff of 1894 was, that our business, instead 
of increasing as it had been under the stimulating effects of the reciprocity treaties, 
fell off to a remarkable degreee; our exports to Cuba in 1895 being only 379.856 bar- 
rels against 662.248 barrels in 1894, and the duty which, under the treaties had been 
88 cents a barrel, was increased to $4. L6 per barrel, which it now is, and a prohibit- 
ive one. Our trade with Brazil fell off" during 1895 about 145,000 barrels, and where 
heretofore our flour was admitted free there is a duty of 52 cents per barrel. Our 
shipments to Germany in 1895 being 256,650 barrels compared with 286,229 barrels 
the year previous, under a tariff of $1.54 per barrel, show a falling off of about 10 
per cent, all of which we believe to be the direct effect of the abrogation of the reci- 
procity treaties with the above countries; and to the same cause we attribute the 
fact that France, Belgium, and Germany have all since put a discriminating and 
Prohibitive duty on American flour, being 21 cents to $1.06, 38 and 77 cents, respec- 
tively. 

Third. We are heartily in favor of a general law being passed authorizing the 
President to negotiate reciprocity treaties with foreign countries, for having already 
been tried and proved successful, as the record of the steady increase in our foreign 
business during the short period which the previous reciprocity law was in effect 
will show, we believe this to be the most practical, effective, and desirable way to 
open the markets of the world to our products. 

Fourth. Not alone are the high tariffs imposed upon our flour by most continental 
countries our only grievance, but the fact that, with the exception of Great Britain, 
Holland, and Denmark, they practically all have discriminating duties against our 
flour compared with our wheat, being thus enabled to buy our wheat, manufacture 
it into flour, and sell it in their own markets at prices we can not compete with. 

DUTIES IMPOSED UPON FLOUR DURING AND SINCE RECIPROCITY. 

The reciprocity treaty with the Republic of Santo Domingo was pro- 
claimed September 1, 1891, and all the breadstuff's that are mentioned 
in the schedule were admitted free. There is a tariff now of $4.50 per 
barrel on flour. 

The treaty with Great Britain, including Trinidad, Barbadoes, the 
Windward and Leeward Islands, British Guiana, and Jamaica, was 
proclaimed February 1, 1892, under which breadstuff's paid 25 per cent 
duty ad valorem. Xow the tariff's range from 72 cents, the lowest, to 
$1.92, the highest, per barrel. 

The Guatemala treaty was proclaimed May 18, 1892, and grain, corn 
meal, and all breadstuff's mentioned in the schedule were admitted free. 
There is a tariff now imposed of $2.65 per barrel on flour. 



30 



RECIPROCITY AND COMMERCIAL TREATIES. 



The Honduras treaty was proclaimed April 30, 1892, at AYhich time 
the tariff was 50 cents per barrel. That was abolished, and since the 
abrogation of the treaty a duty of 25 cents per barrel has been imposed, 

The Nicaragua treaty was proclaimed March 12, 1892, and all bread- 
stuffs enumerated in the schedule were admitted free. There is a tariff 
of 90 cents per 100 pounds imposed upon flour. 

The Salvador tariff was proclaimed December 27, 1892, and corn, 
rice, barley, rye, and all breads tuffs mentioned in the schedule were 
admitted free. Since the abrogation of the treaty, flour imported into 
that country has been taxed 90 cents per 100 pounds. 

Under the Gosta Rica agreement all breadstuff's were admitted free. 
Now there is a tariff of 90 cents per 100 pounds imposed upon flour. 



THE EFFECT UPON ALL FORMS OF BREADSTUFFS. 

The effect of the tariff act of 1894 was seriously felt in the exports of 
all forms of breadstuff's, and the total for 1895 was smaller than for any 
year since 1875. The following table shows the exports of breadstuff's 
annually during the last twenty years : 



Tear. 


Breadstuffs. 


Tear. 


Breadstuffs. 


1875 


$111, 458, 265 
131, 181, 555 
117, 806, 476 

181, 777, 841 
210,355,528 
288, 036, 835 
270, 332, 519 

182, 670, 528 
208, 040, 850 
162,544,715 
160, 370, 821 


1886 


$125, 846, 558 
165, 768, 662 
127, 191, 687 
123, 876, 661 
154,925 927 


1876 


1887 


1877 


1888 


1878 


1889 


1879 


1890 


1880 


1891 


128, 121. 656 


188-1 


1892 


299, 363, 117 
200, 312, 654 
166, 777, 229 
114, 604, 780 


1882 


1893 


1883 


1894 


1884 


1895 


1885 









The percentage of agricultural products exported from the United 
States in comparison with other exports is as follows : 

Division of exports by percentages. 



Year. 


Farms. 


Mines. 


Forests. 


Fisheries. 


Manufac- 
tories. 


Miscel- 
laneous. 


1891 


73.69 

78.69 
74.65 
72.28 
69.73 


2.53 
2.04 
2.41 
2.35 
2.33 


3.29 
2.75 

3.38 
3.22 
3.61 


71 
53 
67 
49 
67 


19.37 
15.61 
19.02 
21.14 
23.14 


41 


1892 


38 


1893 


47 


1894 


52 


1895 


52 







THE MILLERS FAYOR RECIPROCITY. 



Kehlor Bros., of St. Louis, report that the effect of the reciprocity 
treaties made in 1890 "was very favorable to the export trade of the 
United States. They kept the flour trade in a healthy condition, and 
were the cause of the fine development of that industry that has placed 
us ahead of all other milling countries. The effect of their repeal is 
the disastrous condition of the milling trade now existing. Imme- 
diately after the repeal the New York Tribune wrote us asking our 
opinion regarding what the result would be. We think we are on rec- 
ord with them as stating at that time that the result would be, in our 
opinion, that wheat in St. Louis would never be worth more than 75 
cents per bushel under any circumstances, except during comparative 
famine. Since that time we have had poor crops, but the price of 
wheat has never stayed one week in this market over 75 cents per 



RECIPROCITY AND COMMERCIAL TREATIES. 31 

bushel, and has been as low as 40 cents per bushel, and it did not reach 
75 cents per bushel by legitimate means. 

"The effect of repeal of reciprocity upon farm products has been to 
such an extent that it has reduced their value lower than the record of 
any previous years. 

"We favor the reciprocity principle in future tariff legislation from 
beginning to end, believing the present system is as indirect an 
exhaustion of the strength of the United States as can possibly be 
adopted. We believe that the producing capacity of the United States 
of raw materials is the basis of all comforts that both rich and poor 
can get, and their manufacture is just so much additional, as it disposes 
of our labor at the same time with our raw materials. Any legislation 
that cuts off our labor and depreciates the value of our raw material 
simply impoverishes the country, and especially the laboring popula- 
tion. We believe that any country that will discriminate against our 
labor should be shut off commercially from theUnited States altogether. 
We would be better off and have the gold that they draw from us, which 
we need very badly." 

TESTIMONY OF THE MERCHANTS OF BALTIMORE. 

Among the beneficiaries of the reciprocity policy were the merchants 
and ship-owners of Baltimore, who were largely engaged in trade with 
Brazil and the Spanish West Indies. They were represented before 
the committee by President Levering, of the Baltimore Board of Trade, 
and G.Morton Stewart, whose firm owns a number of vessels employed 
in the Brazilian trade, and is largely interested in that business. It 
appears from the statements submitted by them that not only did the 
exports of flour from Baltimore to Brazil drop from 930,000 barrels in 
the year ended June 30, 1894 (which was an increase of 258,000 barrels 
over 1890, the year preceding the adoption of the reciprocity agreement), 
to 842,000 in the year 1895 (after the abrogation of the agreement), but 
that, owing to changes in the Brazilian tariff and in Brazilian freight 
rates, due to the repeal of reciprocity, the trade in flour with that 
country has been virtually destroyed within the last few months, and 
the American vessels which were therein employed are idle for lack of 
profitable cargoes. 

The exporters of provisions have also suffered serious injury on 
account of the abrogation of the reciprocity agreement with Brazil, 
according to the statements of Messrs. Levering and Stewart. They 
both declared emphatically that the reciprocity agreements resulted in 
a large and remunerative increase of the foreign trade of Baltimore; 
that the abrogation of these agreements had resulted disastrously to 
the business and commercial interests of that city as well as to West- 
ern producers, and they strongly advocate a return to the policy so 
unwisely and improvidently abandoned by Congress two years ago. 

"The great Republic of the Northern Hemisphere is in sympathy with 
the great Republic of the Southern Hemisphere," said Mr. O. Morton 
Stewart, of Baltimore, " and consequently there is every logical reason 
to think that that which started so well would have gone on indefinitely 
until there would have been a commercial association and unity that 
would have bound us close to the Brazilian people. There is no doubt 
about it.' 7 

THE INJURY TO THE BRAZILIAN TRADE PERMANENT. 

It is feared that the injury done to our commerce with Brazil by the 
repeal of the reciprocity arrangement is permanent, at least so far as 
flour is concerned. Under that convention, from April 1, 1891, to 



32 



RECIPROCITY AND COMMERCIAL TREATIES. 



August 28, 1894, flour from the United States was admitted free into 
that country. Now there is a duty of 52 cents a barrel. Then we had 
absolute control of the market. Now our wheat and flour exporters 
are entirely at the mercy of the Argentine Republic and the capitalists 
who have erected mills in Brazil to grind the wheat from that country 
and Uruguay. Before the reciprocity policy was repealed there were 
only a few flour mills in Brazil. Now they are springing up all along 
the coast, built by Argentine and Uruguay millers, with European cap- 
ital, and filled with European machinery, to avoid the duty upon flour, 
for wheat is admitted free. 

Formerly little or no wheat was imported into Brazil from the River 
Plate countries. Now the trade amounts to thousands of tons, and is 
rapidly increasing. It will be only a short time at the present rate of 
increase before the Argentine Republic and Uruguay will have driven 
American wheat and flour off the east coast of South America, as Chile 
has driven it off the west coast. Ten years ago California and Oregon 
flour was sold by the cargo as far south as Lima and Valparaiso, and 
we fed Ecuador, Peru, and the people of Colombia who live on the 
Pacific Coast. But since the development of the milling industry in 
Chile, American flour seldom goes farther south than Panama, and we 
have lost a portion of the trade of that city also. We still control the 
markets of Central America, but the Chilean millers occasionally send 
a cargo to Nicaragua and Guatemala on the German ships which go up 
there during the coffee season. 

DEVELOPMENT OF THE MILLING INDUSTRY IN THE RIVER PLATE. 



The flour industry is also increasing rapidly in the Argentine Republic 
and Uruguay. Those countries are beginning to see that there is more 
money in exporting flour than there is in exporting wheat, and compe- 
tition from them has become so great in the Brazilian markets that 
Mr. C. Morton Stewart, of Baltimore, who is very largely engaged in 
the trade, informed this committee that the export price of flour for 
Brazil in Baltimore now is only from $2.85 to $3.70 a barrel, compared 
With $4 to $4.50 under the reciprocity arrangements three years ago. 

The people of the United States have very little comprehension of 
the growth of the agricultural industry in the Argentine Republic and 
Uruguay and the danger that confronts our grain as well as our cattle 
interests from that direction. 

In 1880 the Argentine Republic was importing flour and wheat, but 
in 1882 the tide turned and nearly 2,000 tons were exported from that 
country. About that time modern mills were introduced, and soon 
after the flour product exceeded the local demand, and the Argentine 
millers began to ship it to Europe. The following statements show the 
exports of wheat and flour annually from the Argentine Republic since 
that time : 

Exports of wheat and flour from Argentine. 



Tear. 


Wheat. 


Flour. 


Year. 


Wheat. 


Flour. 


1882 


Tons. 
1,700 
61, 000 

108,499 
78, 493 
37, 864 

257, 865 

178, 928 


Tom. 

"3,'734' 
7,447 
5,262 
5,442 
6, 392 


1889 


Tons. 

22, 806 

327, 894 

395, 555 

490, 109 

1, 000, 137 

1, 608, 600 

* 1,046, 000 


Tons. 
3,360 


1883 


1890 


12, 117 


1884 


1S91 . 


7,015 


1885 


1892 


18, 849 


1886 


1893 


37, 521 


1887 


1894 


56, 812 


1888 


1895 


* 55, 865 







To Europe and Brazil only. Returns from other countries not yet obtainable. 



RECIPROCITY AND COMMERCIAL TREATIES. 33 

EXPORTS OF WHEAT AND FLOUR TO BRAZIL. 

The following- statement shows the exports of wheat and flour from 
the Argentine Republic to Brazil for the four years named: 



Year. 


Wheat. 


Wheat 
flour. 


1891 


Bushels. 
3, 809, 607 
4, 160, 338 
8, 552, f)70 
17, 457, 394 


Pounds. 
4, 670, 540 
22, 844, 272 


1892 


18U3 


58,318,813 
71, 830, 929 


1894 







Mr. Mulhall, the well-known statistician of the London Times, who is 
also editor of the Buenos Ayres Standard, gives it as his opinion that 
the area in wheat in the Argentine Republic in 1895 was double that of 
1893, or more than 7,000,000 acres. The following are his estimates of 
the wheat acreage for the last three years, which will illustrate the 
magnitude as well as the growth of the industry in that country, and 
indicates what our wheat farmers are to expect in the future: 

Acres. 

1893 3,305,000 

1894 5,453,200 

1895 7,436,000 

THE TIDE OF IMMIGRATION. 

The number of immigrants to the Argentine Republic in 1891 was 
28,206; in 1895 they numbered 01,226. The most of these immigrants 
go into the interior and settle upon agricultural lands which are fur- 
nished them free by the Government. In fact, the agricultural devel- 
opment of the country is very similar to that which was going on in 
the Mississippi Valley twenty years ago. 

It is important, also, to consider that the cost of raising wheat in the 
Argentine Republic will average 25 per cent less than in the United 
States, and that the average cost of transporting it from the farmer's 
cart to the hold of the steamer is only about 10 per cent of its market 
value at the seaboard. Thus, assuming the average price of wheat in 
Buenos Ayres at $25 gold per ton, the average cost of transportation is 
$2.50 per ton. 

SIMILAR DEVELOPMENT IN URUGUAY. 

The same story may be told about Uruguay. Mr. L. Rodriguez Diez, 
of Montevideo, who has recently been in the United States as the 
agent of his Government, examining into the methods of our Agricul- 
tural Department for the purpose of organizing something similar in 
Uruguay, made a very interesting statement before the committee con- 
cerning the growth of the* export trade in beef products and cereals 
from his country. He showed us by official statistics that the exports 
of wheat from Uruguay had increased from the value of $169,307 in 
1893 to $1,882,808 in 1891, and it was his opinion that in 1895 the gain 
was 100 per cent. 

He showed us also that there had been a similar increase in the 
exports of flour, which were only 1,054 tons in 1893, but jumped to 
360,024 tons in 1894. The great bulk of this flour, at least 95 per cent, 
goes to Brazil, and the exports in 1895 were double those of 1894. 

The exports of corn from Uruguay in 1893 were only valued at 
8 _!.':>, 272. In 1894 the value was $885,539, and there was ja very large 
increase in 1895, the principal market being Brazil. 
H. Rep. 2263 3 



34 RECIPROCITY AND COMMERCIAL TREATIES. 

Mr. Rodriguez stated that no more windmills are being erected in 
South America. They are all now furnished with Hungarian rollers and 
moved by steam power. 

THE MILLING INDUSTRY IN THE ARGENTINE REPUBLIC. 

The Hon. W. I. Buchanan, United States minister to the Argentine 
Republic, who is always alert when the interests of his fellow-citizens 
are involved, and has made a special study of the agricultural devel- 
opment of that country, has recently made a report to the Secretary of 
State relative to the flour milling industry. He gives the number of 
mills in the Republic as 416, of which 276 are first-class. He estimates 
the capacity as 1,346,040 tons of flour per year. 

The roller system of milling was introduced about fifteen years ago, 
and Mr. Buchanan says that many of the mills in the Argentine Repub- 
lic will compare favorably with the best in the United States, although 
they are not so large. 

" There are very few water mills, and coal costs $4.85 per ton. Labor 
is not expensive. The greater part of the wheat growth in the Repub- 
lic," writes Mr. Buchanan, "is of the Barletta variety. This yields 
from 14 to 15 per cent of gluten when grown near the coast of the river 
Parana, and 1 to 2 per cent less when grown in the interior. The 
Saldome is another variety grown in some parts of the Republic, but it 
is deficient in gluten, yielding only 10 to 13 per cent. 

"I am told by millers that with good machinery and average wheat 
every 100 pounds of wheat will make 66 to 70 pounds of flour. 

" The wholesale price of flour in this city at this writing is $1.80 
(United States gold) per 100 pounds. The price of bran is 43 cents 
(United States gold) per 100 pounds. 

"All flour is shipped in sacks of 90 kilograms (198.4 pounds) each. 
The cost of the empty sack is 12 cents (gold). 

"The largest part of the flour export from this country is consigned 
to Brazilian ports. The freight rates on flour between this city and 
Brazilian ports is as follows: Santos,* 12s. to 13s. per 1,000 kilograms ; 
Rio de Janerio,* 10s. to lis.; Bahia and Pernambuco, 14s. to 16s. 

" The duty on flour-mill machinery is 10 per cent on the value of the 
article. 

"The Argentine Government levies an export duty on flour of 4 
per cent on a fixed value of $4 (Argentine gold) per 100 kilograms 
(220.46 pounds)." 

THE WHEAT HARVESTS OF THE WORLD. 

Every month somewhere in the world a crop of wheat is harvested, 
as follows : 

January — in northern Australia, New Zealand, Venezuela, Peru, and 
in other countries of South America; February and March — in India 
and Egypt; April — in Persia, Syria, Cyprus, and Asia Minor; May — 
in China, Central Asia, Japan, Algeria, and Morocco; June — in Cali- 
fornia, Oregon, the southern United States, Spain, Portugal, Italy, 
Hungary, Turkey, Roumania, south Russia, Bulgaria, and the south of 
France; July and August — in the south of England, France, northern 
United States, Germany, Austria, Switzerland, Poland, Denmark, Hol- 
land, and Belgium; September and October — in Scotland, the north of 
England, Sweden, and northern Russia; November — in South Africa, 
Peru, and northern Australia; December — in South Australia, Chile, 
Uruguay, and the Argentine Republic. 

* Lighterage at 4s. 9d. to 5s. per 1,000 kilograms should be added to the above 
rates. 



VI. 

THE SITUATION IN" FRANCE AND GERMANY. 



The repeal of the reciprocity arrangement with Germany was seri- 
ously prejudicial to the American miller, for the Government of that 
Empire, in retaliation, as claimed, for the differential duty placed upon 
its beet-root sugar by the Fifty-third Congress, immediately imposed 
rates upon our agricultural products that are practically prohibitory, 
the present duty upon wheat being 2 cents a bushel, and upon ilour, 
$2.21 per barrel. 

It is proper to assume that those who framed the sugar section of the 
tariff act of 1894 might have anticipated such reprisals, for they had 
the protest of the German ambassador before them; they had extracts 
from the official and semi-official organs of the Government that con- 
tained threats and showed a vindictive spirit; they had dispatches 
from the United States legation and consulates in Germany describing 
the vehemence and growth of the agrarian sentiment and the danger 
in which the Government stood unless it made some concessions to 
their demands. But all this danger to the farmers who furnish our 
wheat and corn and our hogs and cattle, and the millers who make 
our flour for export, was of no avail. 

The situation is similar in France, and the problem that involves our 
trade in wheat and flour to those countries is complicated and perplex- 
ing. The policy of their Governments toward the imports of agricul- 
tural products from the United States is governed by local sentiment, 
and their tariffs are intended for the protection of local industry against 
an invasion of flour from the United States, which is conceded to be 
better in many respects than that which is manufactured at home. But 
the protection that has been given the French millers enables them to 
seriously interfere with our trade in Great Britain and other countries. 

France has a millers' association of 3,500 members. In Germany 
there is a millers' association of 2,800 members, and they have been 
organized for the purpose of controlling legislation and defending their 
own markets against the United States. 

From France, by reason of the fostering policy of their Government, 
during the last twelve months the local millers have been able to ship 
2,300,000 barrels of flour into Great Britain, which is about 6 per cent 
of our entire product and one-third as much as is exported to Great 
Britain from America. Therefore the millers of the United States have 
not only lost their trade in France, but are losing their trade in Eng- 
land, Scotland, Ireland, Belgium, Holland, Germany, Africa, and other 
countries by reason of the rapid development of Milling in France. And 
what makes this situation the more aggravating is that this flour is 

35 



36 RECIPROCITY AND COMMERCIAL TREATIES. 

largely made of American wheat. Our shipments of wheat to France 
have reached. 42,000,000 bushels in a single year. The French miller 
receives a bounty of 16 cents a barrel on all the flour he exporf s, and 
has a rebate in full of all the duty he has paid upon the wheat it repre- 
sents. That bounty is three times the present profit of American 
millers. 

WHAT THE MILLERS' ASSOCIATION THINKS OF THE SITUATION. 

As suggested by the president of the Millers' Association : 

It seems strange to a man in the milling business that, with the capacity to manu- 
facture into flour all the wheat produced in this country — and we could manufacture 
it all in the period of eight months, with our present capacity — there should be 
exported 100,000,000 bushels of wheat. That exportation meaus that the people of 
this country must forego a possible profit that would be derived from the manufac- 
ture, as well as the distribution of the cost of such manufacture, which has been 
variously estimated at from $50,000,000 to $80,000,000 per year, and not only is the 
flour milling interest directly influenced, but the trade, in its various ramifications, 
is also influenced. Of course, the raising of wheat is the great feature, but the 
manufacture of staves, heading, and the cooperage necessary for packages is affected, 
and, also, the manufacture of paper sacks and cotton sacks. All these people are 
deprived of a possible business by the restrictions placed upon our industry. This 
can be carried farther, to the manufacture of milling machinery, which is also 
affected, and the business of manufacturing milling machinery, with the growth of 
the industry in this country for twenty years, is one of great magnitude. 

EFFECT OF RECIPROCITY UPON FLOUR EXPORTS TO GERMANY AND 

FRANCE. 

Our reciprocal agreement with the German Empire went into effect 
February 1, 1892, under which our flour was admitted to that country 
at the reduced rate of 7.3 marks per 100 kilograms, or $1.54 per barrel, 
and our exports of that finished product to Germany for the years named 
were as follows : 

Barrels. Barrels. 

1891 8,864 1893 209,719 

1892 54,277 1894 286,229 

Which shows a gain of more than 3.127 per cent, while for the year 
ending June 30, 1895, and after the abrogation of the reciprocal agree- 
ment, our exports of flour to that country fell to 256,050 barrels. 

In 1892 we exported to France 210,402 barrels of flour, valued at 
$1,178,475, and in the year 1895, under the present tariff law, our 
exports were only 1,102 barrels, valued at $4,174. 

THE CONTEST BETWEEN AMERICAN AND RUSSIAN GRAIN. 

Previous to February 1, 1892, German imports of American and Eus- 
sian wheat and rye were subject to the same general rates of duty — 
$1.19 per 100 kilograms, or $11.90 per metric ton of 2,240 pounds. The 
duty on the flour of wheat or rye from both countries was $2.50 per 100 
kilograms, or $25 per ton. But on that date, under the reciprocity 
arrangement, the duties on American wheat and rye were reduced to 
$8.33, and on flour to $17.30 per ton. Meanwhile similar imports from 
Eussia continued to pay the former or standard duties, as above stated, 
until the 1st of August, 1893; when, in consequence of disagreements 
between the two Governments, the rates of duty on all imports from 
Eussia into Germany were summarily raised 50 per cent, and became, 
respectively, $17.85 per ton on wheat and rye, and $37.50 per ton on 
flour. 



RECIPROCITY ARD COMMERCIAL TREATIES. 37 

Then a commercial treaty was concluded between Germany and Eus 
sia which swept away all these discriminations, secured to the wheat, 
flour, and all other imports from Eussia the minimum tariff conceded 
to the most favored nations, and put that country upon the same footing 
as that of the United States while the reciprocity arrangement with us 
was in force in all that relates to the markets of Germany. The effect 
of these changed conditions, when applied to the whole list of imports, 
are too remote and wide reaching to be yet estimated; but, in respect 
to breadstuff's, the most important item of competition, the results may 
be already seen. 



vn. 

DieOEIMnSTATIONS AGAINST AMERICAN 
OOMMEEOE. 



There are many discriminations, restrictions, and t)ther obstacles 
imposed by foreign Governments to the extension of our export trade, 
particularly in food products, in addition to those already mentioned, 
which should also be taken into consideration in the negotiation of com- 
mercial arrangements and the application of retaliatory measures, if 
found necessary. For example, in a memorandum for the use of this 
committee, Dr. D. E. Salmon, Chief of the Bureau of Animal Industry 
of the Department of Agriculture, says: 

Great Britain requires all meat-producing animals to be landed at certain pre- 
scribed places, called foreign animal wharves, where all must be slaughtered within 
ten days from the time of landing. This prohibits the introduction of animals for 
fattening purposes, and also prevents such animals from being taken to the regular 
markets of the country, or from being held longer than ten days to recover from 
the effects of the voyage. It has been estimated that this causes a loss to the 
American exporters of about $10 a head on each bullock exported. 

This regulation was made on account of the existence of pleuro-pneumonia in this 
country, but the British Government has positively refused to modify it since pleuro- 
pneumonia was eradicated. Sheep have been admitted iuto the British markets until 
recently, but on account of the discovery of some cases of scab among the American 
sheep these animals are now subjected to the same restrictions as are applied to 
cattle. 

CATTLE AND BEEF EXCLUDED FROM GERMANY. 

Germany excludes American cattle and dressed beef. Pork which has not been 
inspected and certified to by this Government is also excluded. Cattle and fresh 
beef were excluded, on the ground that some animals affected with Texas fever were 
found among a shipment to that country. In case this assertion was correct, it does 
not justify the exclusion of either cattle or beef. No cattle from the Texas-fever 
district are allowed shipment to Germany or any other European country, and those 
which do not come from that district, although affected, are incapable of spreading 
the disease; consequently there is no danger to German cattle. Incase danger is 
admitted, our cattle could be unloaded so as to absolutely guard against the 
spread of the disease. All animals from this country are shipped for immediate 
slaughter, and can be landed at places set apart for them where there are slaughter- 
ing establishments, and where there would be no dauger of their coming in contact 
with the native cattle of the country. There is no justification for excluding our 
fresh beef, as this is all inspected at the time of slaughter and is accompanied with 
a certificate from this Government of inspection and wholesomeness. 

There have also been local regulations and restrictions in various parts of Germany 
which have greatly interfered with the sale of our meats. As an example of such 
restrictions, I refer to the regulation in force at Freiburg in August last, which 
required a notice to be posted in meat shops where American meats are sold, which 
stated that the meat had only been superficially examined and no guaranty could 
be given of its entire freedom from unwholesome qualities. Such a notice, of course, 
practically prevented the sale of the meat to which it referred. 

DISCRIMINATIONS IN FRANCE AND OTHER COUNTRIES. 

France excludes American cattle and receives pork only when inspected and certi- 
fied. With sheep a certificate is required that the animals have not been exposed 
to any contagion within six weeks. As such a certificate can not be given with 
animals that have been shipped from the interior and the history of which is not 
38 



RECIPEOCITY AND COMMERCIAL TREATIES. 39 

known, this regulation practically prohibits the introduction of our sheep into that 
country. 

A regulation has also been recently made in France that all canned meats pur- 
chased for army supplies shall be of French origin. Heretofore these meats have 
been purchased in large quantity from American packers. It is stated in recent 
press dispatches that an order has been made allowing the admission of American 
cattle to the French markets on condition that tbey are tested with tuberculin. The 
Department of Agriculture has no official information in regard to such an order, but 
if it lias been made it is unjust and unnecessary. Our cattle are shipped to France 
only for slaughter, and if affected with tuberculosis, this disease could be readily 
detected by the inspectors at the timo the carcass is dressed. A tuberculin test of 
steers would be a very difficult and expensive process, and probably would operate 
to prevent tbe introduction of our cattle. 

Denmark and Belgium have regulations practically identified with those of Ger- 
many, as they are made to correspond with the German regulations, in order that 
their trade with that country will not be affected by allowing the admission of 
American animals and meats which are excluded by Germany. 

The importation of pork is entirely prohibited by Russia. These are the principal 
countries to which American animals and meats are shipped. There are some restric- 
tions in other countries, but the trade affected is so insignificant that the Agricul- 
tural Department has received no information recently concerning them. 

THE EMBARGO AGAINST AMERICAN HORSES IN GERMANY. 

The latest assault by Germany upon the export interests of the 
United States is a decree which practically prohibits the importation 
of horses into that Empire. It requires that before he can land a 
horse, the importer must furnish the customs officers a detailed pedi- 
gree of the animal for at least four generations, with a certificate attest- 
ing its truth signed by a German consul; also, a certificate from a 
German veterinary surgeon that the animal is sound and in full health. 
Having obtained these two certificates, which will cost from $3 to $5 
each, the importer must then obtain a permit from the governor of the 
district in which the animal is to be offered for sale. The expense of 
securing these certificates and permits will not be less than $10, and 
none but horses of fine blood and great value can therefore be imported 
with profit. 

NO ACTION BY THE EXECUTIVE DEPARTMENTS. 

With the exception of a modus vivendi that was negotiated with 
Spain at the request of the milling interests of the country, and by 
which the exports from the United States to Spain and Puerto Eico 
have the advantage of the second column of the Spanish tariff, your 
committee can not ascertain that any attempt has been made by the 
Executive Departments since 1893 to secure concessions from any for- 
eign government in favor of the products of the United States, or to 
secure the abrogation of unjust discriminations against American prod- 
ucts by a judicious use of the retaliatory provision of section 5 of the 
act of August 30, 1890, which is as follows : 

Sec. 5. That whenever the President shall he satisfied that unjust discriminations 
are made hy or under the authority of any foreign State against the importation to 
or sale in such foreign State of any product of the United States, he may direct that 
such products of such foreign State so discriminating against any product of the 
United States as he may deem proper shall be excluded from importation to the 
United States; and in such case he shall make proclamation of his direction in the 
premises, and therein name the time when such direction against importation shall 
take eifect, and after such date the importation of the articles named in such procla- 
mation shall he unlawful. The President may at any time revoke, modify, termi- 
nate, or renew any such direction as, in his opinion, the public interest may require. 

Note. — Portions of Senate Executive Document No. 153, Fifty-fourth Congress, 
first session, which contains the decrees and regulations of Germany, France, Bel- 
gium, and Denmark, is printed as Appendix E to the report. 



Yin. 

THE SITUATION EST CUBA. 



This country is the natural and only profitable market for Cuban 
sugar, and should furnish in return the larger share of the imports of 
that colony. Under the reciprocity arrangement Cuba was very pros- 
perous. Her sugar brought high prices and there was a very large 
consumption in the United States, while nearly all the foreign imports 
were brought from our ports at low rates of duty. The sugar industry 
was much enlarged. New plantations were opened, new mills were 
erected, new lines of trade were established, and large amounts of cap- 
ital were invested by citizens of the United States as well as Cubans in 
their development, under the supposition that the reciprocity arrange- 
ment which brought so much prosperity would be permanent. 

When it terminated everything was thrown into confusion. Finan- 
cial disaster threatened every man who was engaged in industry or 
commerce. The duty imposed upon sugar by the United States placed 
every planter in Cuba at the mercy of the sugar trust, while the cost 
of every imported article, including flour, provisions, and other kinds 
of food, was immediately doubled. The incomes of the principal part 
of the population were reduced 50 per cent and the expense of living 
was increased 100 per cent. In the meantime the enormous taxes, that 
are imposed by Spain to maintain one army of soldiers and another 
army of officials, continued. The people rebelled. Protests were sent 
to the Cortes, and the minister of the colonies at Madrid was over- 
whelmed with remonstrances. 

SOME MODIFICATIONS IN THE TARIFF SECURED. 

The United States minister at Madrid arranged with the minister of 
foreign affairs a modus vivendi or temporary arrangement under which 
the Government applied to — 

the products of the United States in the islands of Puerto Rico and Cuba the duties 
of the second column of the tariff now in force as long as the Government of the 
Union concedes to the products of said islands the most favored-nation treatment, 
it being understood that in no case shall American products in Cuba and Puerto 
Rico or Spanish products in the United States be subjected to a differential treat- 
ment in respect to those of other countries. 

This modus vivendi shall remain in force until the conclusion of a definite treat- 
ment between the parties interested, or until one of them shall give to the other 
three months' notice of the date upon which it is desired to terminate it. 

EFFECT OF RECIPRQCITY IN CUBA. 

The reciprocity agreement between this country and Spain, covering 
the markets of Cuba and Puerto Rico, was proclaimed September 1, 
1891. It admitted flour at $1 per 100 kilos, about 88 cents per barrel. 
The present tariff is $4.16. 
40 



RECIPROCITY AND COMMERCIAL TREATIES. 41 

As suggested by one of the millers who answered the inquiries of the 
committee : 

It is well to consider the growth of our flour trade with Cuba and Puerto Rico 
during the continuance of this agreement, the exports of which to Cuba for the years 
named having been as follows: 

Barrels. . Barrels. 

1891 114,441 1893 616,406 

1892 366,175 | 1894 662,248 

Which shows a growth of more than 480 per cent, while our export flour to Cuba for 
the year ending June 30, 1895, the year after the annulment of our reciprocity treaty, 
fell off to 379,856 barrels, a loss of more than 42 per cent. This increase of flour 
trade with Cuba was not enjoyed by any other countries, as the exports of flour to 
Havana, the metropolis of that island, from Europe fell from 86,519 bags during the 
months of January, February, March, and April, in 1891, to 4,268 bags during the same 
months in 1892. As I understand it, these same bags are figured at 140 pounds each. 
Under this arrangement similar advancements in our flour trade with Puerto Rico 
were achieved, having been as follows : 

Barrels. I Barrels. 

1891 127,983 1893 200,053 

1892 162,147 | 1894 200,813 

Which shows a gain of about 60 per cent, while our flour export to Puerto Rico for 
the year ending June 30, 1895, fell to 118,617 barrels, or a loss of about 40 per cent. 

VALUE OF THE CUBAN TRADE. 

The gross exports from Cuba are valued at about $100,000,000 per 
year, three-fourths of which are sent to this country and consumed 
here. The gross imports into Cuba amount to $53,000,000 per year, 
three-eighths of which only are produced in and shipped from the 
United States. Thus we furnish a market for 75 per cent of the exports 
of Cuba, and supply but a minor part of her imports, while England 
aod Spain enjoy the principal portion of that trade. 

The most striking statement we have recorded on this subject is from 
the Louisville and Nashville Eailroad Company, as follows: 

Our records show that, from the establishment of our line of steamers, December, 
1893, from Pensacola, Fla., to Havana, Cuba, until the withdrawal of the reciprocity 
relations with Cuba, August, 1894, we handled from St. Louis as follows: 

Tons. 

Flour (177,334 sacks) 17, 733 

Corn (218,787 sacks) 24,066 

Oats (12,498 sacks) 1,000 

Bran (7,231 sacks) 578 

Hay (14,909 bales) 800 

Total (twenty months) 44, 177 

Since that time to date we have handled : Tons. 

Flour (43,761 sacks) 4, 376 

Bran (4,894 sacks) 391 

Corn (4,828 sacks) 531 

Hay (9,344 bales) 234 

Total (nineteen months) 5,532 

The manager of the New York and Cuba Mail Steamship Company, 
New York City, writes to the committee as follows : 

With the abrogation of the reciprocity treaty between the United States and 
Cuba, imports from this country have been made subject to the highest rates of 
duty. This has taken away our trade in railroad iron, cars, locomotives, machinery, 
etc., and has almost killed the trade in flour, provisions, and produce. 

The reduction of duties on provisions, cereals, and produce would restore the trade 
to the United States. In flour alone our trade would increase 500 per cent. On 
other products the volume of traffic would be many times greater than it now is. 



42 RECIPROCITY AND COMMERCIAL TREATIES. 

The volume of business was more than doubled under reciprocity arrangements. 
The Statistical Bureau of the Treasury Department will confirm this statement, and 
also demonstrate how the business has since fallen off, but it can not show to what 
extent our trade with Cuba would have increased had the influence of reciprocity 
continued a few years longer. 

The reciprocity enabled us to double our tonnage-carrying capacity to Cuba, and 
yet carry full cargoes. Its abrogation left us with the increased tonnage capacity, 
but with less than half cargoes. 

The total exports of merchandise from the United States to Cuba 
during 1891, the year before the agreement was negotiated, were 
$12,224,888; in 1892 they were $17,953,570; in 1893,124,157,698; in 
1894, $20,125,321; but in 1895, after the repeal of the reciprocity agree- 
ment, they fell again to $12,887,061. 



IX. 

PEESENT COjroiTIOl^r OF OUE EXPOET 

TEADE. 



Tlie tendency of tariff legislation by the Congress of the United 
States since the war has been toward a reduction of customs duties 
and the enlargement of the free list, while most of the nations which 
compete with us for the world's markets are adopting and extending 
the protective policy that is responsible for the progress and prosperity 
of this Bepublic, and in several cases the removal of import duties by 
the United States has been followed by the imposition of export duties 
upon the same articles by the nations from which they come. We have 
been gradually tearing down the wall that defended our industries 
against the invasion of foreign competitors, while they are erecting 
barriers to keep our products from their consumers. The restrictions 
placed upon our farm x^roduce, particularly cattle, pork, and other pro- 
visions, by the European Governments, have grown more and more 
severe, and have usually been without other justification than the 
desire to protect their own producers against the competition of our 
farmers. 

THE COMMERCIAL POLICY OF OTHER NATIONS. 

Nearly all the nations of the earth are increasing their rates of tariff, 
both for the protection of domestic industries and for revenue to sup- 
port their vast armies and pay interest upon their enormous debts; and 
only recently Mr. Chamberlain, the colonial secretary of Great Britain, 
the last nation to adhere to the doctrine of free trade, advocated an 
abandonment of the traditional policy of that Government. 

In a speech before the Canadian Club of London, on the 28th of 
March, he proposed an Imperial Zollverein, based upon free trade 
within and a tariff for protection without the British Empire. His 
plan, in other words, is a free interchange of commerce between the 
United Kingdom and its colonies, and the imposition of duties upon 
imports from foreign countries. Canada, for example, in return for the 
free entry of manufactured merchandise from the mother country, 
would be entitled to the free entry of her corn, wheat, barley, Hour, 
hops, cattle, provisions, lumber, and other products into British and 
other colonial ports, while similar articles from the United States, Kus- 
sia, Austria, and the Argentine Republic would have to pay duty. 
Cane sugar from Jamaica, Barbados, and Trinidad would enjoy a 
similar advantage over that from the other West and East Indies, and 
the beet root product of Germany and France. Wool from Australia 
and the African colonies would be admitted free, while that from Tur- 

43 



44 



RECIPROCITY AND COMMERCIAL TREATIES. 



key and the Argentine Kepublic would be taxed; and there would be 
a discrimination against the cotton of the United States and Egypt in 
favor of that from India. In short, his Zollverein would place the 
colonies of the British Empire upon the same commercial relations as 
those existing between our States, coupled with tariff protection against 
foreign competitors. 

While it is not probable that the suggestions of Mr. Chamberlain will 
find sufficient favor to be framed into law during the present year, his 
abrupt and radical departure from the established policy of his Govern- 
ment is a striking evidence of the growth of the protection sentiment 
in Great Britain, as well as an acknowledgment of the wisdom and 
justice of the measures that have made this nation great. 

THE FOREIGN COMMERCE OF THE WORLD. 

The following figures, compiled from the latest and most reliable data 
available, show T the total foreign commerce in merchandise of some of 
the principal countries, the values being reduced to United States cur- 
rency on the basis of the official valuation of foreign coins issued by the 
Director of the Mint, October 1, 1895 : 



Country. 


Year. 


Value. 




1895 
1895 
1894 
1894-95 
1894 
1894 
1894 
1895 
1894 


$3, 415, 741, 975 




1, 700, 883, 120 
1, 694, 800. 000 






1, 539, 508, 130 




1, 030, 400, 000 




- 


973, 251, 640 




957, 915, 420 




544, 074, 995 


Italy 


424, 231, 028 







The following statement shows the imports and exports of merchan- 
dise of the nations named per capita of population: 



Country. 


Tear. 


Value. 




1894 
1894 
1894 
1894 
1894 
1894 
1895 
1894 
1895 
1894-95 
1894 
1894 
1895 


$396. 46 
235 79 


Falkland Islands 


Netherlan ds 


214 86 




191 34 




154 48 


Queensland .• 


143 38 


United Kingdom 


87 28 


France 


44.02 


Germany 


34.02 


United States 


23 68 


Italy 


13 73 




7 39 




2 41 







THE PROPORTION OF MANUFACTURED GOODS EXPORTED. 

Although they have not kept pace with other features of our national 
development, the exports of natural products, such as come from the 
farms, forests, fisheries, and mines of this country, have increased in 
late years to a gratifying degree. But our exports of manufactured 
goods seem trifling when the annual returns are placed beside the 
figures that express the output, of our factories and their enlarged 



RECIPROCITY AND COMMERCIAL TREATIES. 



45 



capacity for production. Nor has this class of exports increased so 
rapidly as our imports of similar merchandise from foreign countries. 
The following table shows the value of the product of the twenty-two 
largest manufacturing industries in the United States as given by the 
last census, 1890-91, compared with the exports of the same classes of 
articles for the same year : 



Industries. 



Iron and steel 

Foundries and machine shops. . 
Slaughtering » u( l meat packing 

Flouring mills 

Bakeries 

Lumber and sawmills 

Carpentering 

Planing mills 

Cotton goods 

Men's clothing (factories) 

Men's clothing (custom made). 

Woolen goods 

Boots and shoes 

Tanneries 

Masonry 

Breweries 

Printing 

Car shops 

Carriages and wagons 

Cigars and cigarettes 

Sugar and molasses 

Distilleries 

Total 



Produced in tho 
United States 


Exported from 
the United 


Percentage 
of product 
exported. 


census year 


States fiscal 


1890. 


year 1890-91. 


$563, 954, 348 
412, 701, 872 


1 $28, 909, 614 


0.029 


561.611,668 


139, 681, 730 


.241 


513, 971, 474 
128,421,535 


| 128, 121, 656 


.199 


403, 667, 575 


) 




281, 195, 162 


> 26, 270, 040 


.03 


183, 681. 552 


> 




267,981,724 


13, 604, 857 


.051 


251,019,609 


) 




126,219,151 


> 558, 621 


.001 


133, 577, 977 


5 




220, 649, 358 


651, 343 


.003 


138, 282, 004 


12, 627, 504 


.091 


190, 704, 818 


1, 046, 122 


.005 


182,731,622 


672, 243 


.003 


179, 859, 750 


1, 820, 470 


.011 


129, 461, 693 


2, 885, 250 


.022 


114, 570, 555 


2, 015, 870 


.017 


129, 693, 275 


1, 107, 013 


.009 


123, 118, 259 


6, 918, 287 


.056 


104, 197, 869 


1, 887, 431 


.018 


5, 341, 272, 850 


368, 778, 051 


.069 



OUR COMMERCE WITH LATIN AMERICA. 



Last year we bought $246,082,802 worth of the products of our 
neighbors in the other American Republics and colonies, and admitted 
nearly 92 per cent of it free of duty. During the same year we sold 
them merchandise to the value of $143,101,000, every ounce of which 
was taxed from 5 to 100 per cent upon its value in their custom-houses. 
The $103,000,000 which represents the balance of trade in their favor 
was paid for in cash — in gold, or in bills of exchange on London which 
are equivalent. 

After the close of the war we began to reduce duties. The duties on 
hides was removed, and rubber was admitted free. In 1872 the duty 
on coffee was reduced to 3 cents a pound, and in 1873 it was taken 
off altogether. As a result, affected, of course, by the growth of popu- 
lation, the value of coffee consumed in the United States increased 
from $22,860,000 in 1873 to $56,784,391 in 1880, to $78,267,432 in 1890, 
and to $95,087,161 in 1895. During the year 1892 the total imports 
reached the enormous value of $126,801,607. 

The greater portion of our supply came from Brazil, which is the 
largest and most populous of the South American countries, and fur- 
nishes the most striking and significant example of our commercial 
folly. It stands next to the United States in population, having 
between thirteen and fourteen millions of people, and a geographical 
area greater than that of the United Statps, not including Alaska. 
The total foreign trade of Brazil averages annually about $250,000,000, 
being very nearly divided between exports and imports. Of the export 
trade the United States has the largest share, taking more than halt 
the total in the form of coffee, sugar, hides, and rubber, while the 



46 RECIPROCITY AND COMMERCIAL TREATIES. 

remainder is divided among the European countries. Of the import 
trade England enjoys about one-half, while the rest is divided among 
France, Germany, Spain, Belgium, Italy, and the United States. 

England buys annually from Brazil only about $5,000,000 worth of 
merchandise and sells her about $40,000,000, while the United States 
buys nearly $80,000,000 and sells her about $15,000,000 of our products. 

OUR PHENOMENAL TRADE WITH BRAZIL. 

During the last thirty years the United States has imported more 
than $1,500,000,000 worth of raw materials from Brazil, and has sold 
her only about $250,000,000 worth of merchandise, which has compelled 
us to pay the enormous sum of $1,250,000,000 in gold or its equivalent 
to settle the balance of trade, and nearly every cent of it has gone into 
the pockets of European merchants and manufacturers. The exchange 
alone charged by the London bankers on this business, usually three- 
fourths of 1 per cent, often reaches the enormous sum of half a million 
dollars for a single year, and has aggregated at least $10,000,000 for 
the thirty years. At the. rate of $10 a ton we have paid during the 
same period for transportation at least $30,000,000 to owners of English 
ships. 

Our imports from Brazil, following the removal of duties by the United 
States from her chief products, increased from $9,000,000 in 1850 to $21,- 
000,000 in 1860, $25,000,000 in 1870, $52,000,000 in 1880, $60,000,000 in 
1890, $79,000,000 in 1895, while in 1892, under reciprocity, they reached 
$118,000,000. 

In 1860 we sold Brazil about $6,000,000 worth of merchandise; in 
1880 the total rose to $8,000,000; in 1890 to $11,000,000, and in 1895 to 
$15,000,000. 

Since 1880, that is within the last fifteen years, we have purchased 
from Brazil raw products amounting to $898,143,946; we have sold her 
manufactured merchandise amounting to $167,236,099, and we have 
paid the balance, $731,907,897, in gold or its equivalent, which money 
was expended in Europe for merchandise we could have supplied just 
as well. 

During this time the exports from England to Brazil increased from 
$18,000,000 to $54,000,000. 

OUR EXPORTS TAXED, OUR IMPORTS FROM BRAZIL FREE. 

Every ounce of merchandise that is shipped from the United States 
to Brazil pays duty before it is admitted to her ports. Of the products 
of Brazil that are exported to the United States almost everything 
comes in free. In 1894, for example, our imports from Brazil amounted 
to $79,360,159, of which duties were paid upon only $64,499. 

In 18.0 our imports from the Latin-American countries were valued 
at $79,000,000. In 1890 they were valued at nearly $200,000,000. In 
1895 they reached $208,243,791. 

In 1860 our exports to Latin America were $44,000,000. In 1890 they 
were $87,000,000. In 1893, when the reciprocity policy was in full oper- 
ation, they reached $103.413,075 ; but after it was repealed, in 1895, they 
dropped to $87,949,564. ' 

In 1860 the imports of England from Latin America were nearly 
$102,000,000. In 1894 they were about the same. Her exports, how- 
ever, during those years, jumped from $87,000,000 to $174,000,000, and 
those, of France and Germany increased in a corresponding ratio, 



RECIPROCITY AND COMMERCIAL TREATIES. 47 

The exports from England to Latin America consist of cotton goods 
and other wearing apparel, drugs and medicines, machinery and imple- 
ments, boots and shoes, and other articles of leather, hardware, rail- 
way supplies, and other articles of iron and steel, and all the various 
forms of manufactured merchandise that enter into the wants of men. 
The almost uniform testimony of the merchants and manufacturers 
who have replied to the inquiries sent out by this committee is that the 
advantages enjoyed by their competitors in cheaper labor, in conven- 
ient banking facilities, arid in regular lines of transportation are almost 
insurmountable obstacles to the extension of their trade. While the 
reciprocity arrangement was in operation in Brazil the privileges it 
gave to merchandise from the United States were an almost complete 
offset to the advantages their European rivals had enjoyed, and if they 
had been allowed to remain undisturbed, our manufacturers and mer- 
chants might have obtained a fair share of the trade. 

RECIPROCITY THE GOLDEN RULE OF COMMERCE. 

The reciprocity plan, which is intended to apply to such cases should 
be recognized as a commercial transaction; as a simple, wise proposi- 
tion such as every merchant and manufacturer employs in the conduct 
of his business; based upon ordinary common sense, bat so far-reaching 
in its influence that if it could have been carried out without interrup- 
tion its effect would have been felt in the income of every farmer, in 
the profits of every merchant, and in the wages of every mechanic and 
laborer in this land. 

Reciprocity was an endeavor to apply the golden rule to commerce; 
to persuade our neighbors to make concessions in favor of our products 
in return for concessions we have already made in favor of theirs; to 
secure for the farmer and manufacturer of the United States advantages 
that their rivals in other countries may not enjoy, and to increase the 
imrchasing power of the consumers in the other American nations by 
reducing the cost of certain merchandise of which they, by reason of 
the high duties imposed upon it, are in a great measure deprived. 

It requires no argument to demonstrate that the people of Cuba will 
consume more flour if the duty on that article is reduced from $5.78 to 
88 cents a barrel, or that the people of Brazil, since they produce no other 
food products, will buy their supplies in the United States if they can 
import them from this country at a duty of 25 per cent less than they 
must pay on the same articles when imported from Europe. And when 
one considers that the value of cotton goods imported into the Latin- 
American countries annually reaches beyond a hundred million dollars, 
it is a waste of time to discuss the advantage of securing such a 
concession. 

The annual imports of the Latin-American countries average 
$600,000,000, and of these we have usually furnished about 15 percent.- 
The annual exports of the Latin- American countries average about 
$000,000,000, and we have usually purchased about 30 per cent. In 
their commerce with Great Britain these conditions are reversed. 

FREE IMPORTS INTO THE UNITED STATES. 

The returns of the Bureau of Statistics show that nearly one-half of 
the merchandise imported into the United States during the fiscal year 
1895 was admitted free of duty, the exact amount being $303,233,795. 
The value of imports upon which duty was collected was $368,736,170. 



48 



RECIPROCITY AND COMMERCIAL TREATIES. 



The following table will show the character of these free imports, the 
value of each, and the source from which they came : 



Articles. 



Whence imported. 



Animals 

Asphaltum 

Bags for grain 

Bananas 

Other fruits 

Burlaps 

Cabinet woods 

Chemicals, drugs, and dyes 

Cocoa 

Coffee 

Copper ores and bars 

Cork woods 

Cotton, raw 

Dyewoods 

Fertilizers 

Fibers 

Fish, fresh 

Furs 

Gums 

Hair 

Hides and skins 



India rubber and gutta- 
percha. 
Indigo 

Licorice root 

Lime, chloride of 

Lumber 

Material for hats and bon- 
nets. 
Matting 

Mineral ores, except lead ore 

Oils 

Opium, crude 

Potash 

Bags and other paper stock 

Salt 

Seeds 

Silk, raw 

Soda, nitrate of 

Spices 

Sulphur and brimstone 

Tea 

Tin 

Vanilla beans 

Wood, and manufactures of. 
Wool 



$2, 737, 078 

266, 956 

1, 110, 403 

4, 674, 861 

733, 989 

4, 903, 182 

1, 245, 203 

2, 774, 498 
3, 195, 811 

95, 087, 161 

590, 430 
1, 049, 073 
4, 814, 383 
1, 589, 773 
1, 092, 449 

11, 160, 000 



1, 107, 449 
3, 320, 053 

5, 560, 322 

1, 165, 944 

25, 962, 822 

18, 475, 382 
2, 015, 976 

1, 404, 563 
1, 644 835 

11, 149, 951 

2, 755, 450 

1, 638, 838 

1, 776, 336 

3, 280, 078 

730, 669 

2, 853, 012 
5, 230, 324 

561, 490 

1, 336. 105 

22, 620, 056 
4, 124, 712 
2 : 368, 012 

1, 700, 784 

13,171,379 

5, 713, 300 

4, 732, 142 
1, 202, 606 

23, 996, 224 



Canada, Mexico, Germany, Great Britain. 

British West Indies, Venezuela, Germany, Italy. 

British East Indies, Great Britain. 

British West Indies, Cuba, Central America, Colomoia. 

Cuba, Central America, Colombia. 

Great Britain, British East Indies. 

Cuba, Santo Domingo, Mexico, Nicaragua, Brazil, Colombia, 
Great Britain. 

Central and South America, Germany, Great Britain, 
France, Italy, Spain, Switzerland, Turkey in Asia. 

British West Indies, Haiti, Central America, Brazil, Dutch 
Guiana, Ecuador, Venezuela, Great Britain. 

Brazil, Colombia, Venezuela, Central America, Mexico, 
West Indies, Dutch East Indies, Netherlands. 

Canada, Cuba, Mexico, Germany, Great Britain. 

Great Britain, Portugal, Spain. 

Peru, Great Britain, Turkey in Africa. 

British West Indies, Cuba, Haiti, Santo Domingo, Mexico. 

Canada, British West Indies, French Guiana, Mexico, Bel- 
gium, Germany, Great Britain, French Oceanica. 

Canada, Mexico, Austria-Hungary, Belgium, Germany, 
Great Britain, France, Italy, Netherlands, Russia, Brit- 
ish East Indies, Philippine Islands. 

Canada, Newfoundland, China. 

Canada, Argentine Republic, Belgium, France, Germany, 
Great Britain, Russia. 

Mexico, Austria-Hungary, Great Britain, Turkey in Africa, 
British East Indies, British Australasia. 

Argentine Republic, Brazil, Uruguay, Germany, Great 
Britain. 

Canada, Central America, Mexico, Argentine Republic, 
Brazil, Colombia, Uruguay, Venezuela, Santo Domingo, 
Belgium, France, Germany, Great Britain, Russia, Tur- 
key in Europe, British East Indies. 

Brazil, Central America, Colombia, Ecuador, Belgium, Ger- 
many, Great Britain, Portugal, British East Indies. 

France, Germany, Great Britain, Netherlands, British East 
Indies. 

Turkey in Asia, Russia. 

Belgium, France, Germany, Great Britain. 

Canada, Cuba, Colombia. Mexico, Austria-Hungary, Ger- 
many, British East Indies. 

France, Germany, Great Britain, Italy, Switzerland, China. 

China, Hongkong, Japan. 

Canada, Newfoundland and Labrador, Chile, Russia, Spain, 

Turkey in Asia, Japan. 
France, Germany, Italy, Turkey in Europe, British East 

Indies. 
Germany, Turkey in Africa, Turkey in Asia. 
Belgium, Germany, Great Britain. 
Canada, Belgium, France, Germany, Great Britain, Italy, 

Netherlands, Turkey, Japan. 
British West Indies, Dutch West Indies, Great Britain, 

Italy. 
Canada, France, Germany, Great Britain, Italy. 
France, Great Britain, Italy, China, Japan. 
Chile, Peru. 

British West Indies, France, Germany, Netherlands, Brit- 
ish East Indies. 
Great Britain, Italy. Japan. * 
Canada, Great Britain, China, Japan. 
Germany, Great Britain, British East Indies, British 

Australasia. 
Mexico, French West Indies, France, French Oceanica. 
Canada, Mexico. 
Canada, Argentine Republic, Uruguay, Belgium, France, 

Germany, Great Britain, Russia, Turkey in Europe, 

British Australasia, China. 



RECIPROCITY AND COMMERCIAL TREATIES. 



49 



STATEMENT OF THE BALANCE OF TRADE. 

The following table shows the countries from which our average 
annual imports are in excess of our average annual exports, with the 
percentage of imports admitted free during the fiscal year 1895. The 
figures are not exact, but approximate the average value of imports 
and exports for the last ten years. 



Countries. 



Exports t#— 



Imports 
from — 



Excess of 
imports. 



Percentage 
of imports 

admitted 
free during 

liscal year 
1895. 



Europe: 

Austria-Hungary. . . 

France 

Germany 

Italy 

Switzerland 

Turkey 

North America: 

.Mexico 

Central America: 

Costa Rica 

Guatemala 

Honduras 

Nicaragua 

Salvador 

West Indies: 

British 

Cuba 

Puerto Rico 

Santo Domingo 

South America: 

A _entine Republic 

Brazil 

Chile 

Colombia 

Ecuador 

Guiana — British 

Dutch 

Uruguay 

Venezuela 

Asia: 

China 

Japan 

Turkey 

East Indies: 

British 

Dutch 

Philippine Islands 

Africa, Turkev in 



Total 



$1, 000, 000 
60. 000, 000 
92. 000, 000 

14. 000, 000 
10, 020, 000 

50, 000 

15, 000, 000 

1, 000, 000 

2, 0C0, 000 
550, 000 

1, 000, 000 
1, 150, 000 

9, 000, 000 
15.000,000 

2, 5U0, 000 

1, 250, 000 

4, 500. 000 
14, 000, 000 

3, 000, 000 

2, 750. 000 
750, I I0d 

2, 000, 000 
350, 000 

1, 000, 000 

4, 000, 000 

4, 500, 000 

4, 000, 000 

130, 000 

3, 500, 000 
1, 250, 000 

119, 000 
150, 000 



$8, 500, 000 
70, 000, 000 
95, 000, 000 
20, 000, 000 
14, 000. 000 
2, 000, 000 

28, 000, 000 

2, 500, 000 

2, 500, 000 
750, 000 

1, 600, 000 

3, 000, 000 

14, 000. 000 

75, 000, 000 

3, 250, 000 

2, 500, 000 

5, 500, 000 
80, 000, 000 

3, 750, 000 

3, 750, 000 
850, 000 

4, 500, 000 
750, 000 

2. 000, 000 
10, 000, 000 

20, 500, 000 
25, 000. 000 

3. 000, 000 

22, 000, 000 
8, 000, 000 
8, 000, 000 
3, 000, 000 



$7, 500, 000 
10, 000, 000 
3, 000, 000 
6, 000, 000 
3. 980, 000 
1, 950, 000 

13, 000, 000 

1, 500, 000 
500, 000 
200, 000 
600, 000 

1, 850, 000 

5, 000, 000 
60, 000, 000 

750, 000 
1, 250, 000 

1, 000, 000 

66, 000, 000 

750, 000 

1, 000. 000 
100, 000 

2, 500, 000 
400, 000 

1, 000, 000 

6, 000, 000 

16, 000, 000 
21, 000, 000 

2, 870, 000 

18, 500, 000 
6, 750, 000 
7,881,000 
2, 850, 000 



261, 519, 000 



543, 200, 000 281, 6S1, 000 



20.56 
20.37 
19.67 
47.80 
6.25 
64.91 

82.56 

99.99 
99.70 
94.69 
98.39 
99. 99 

69.83 
33. 45 
24.96 
31.55 

89.07 
97.78 
99.03 
90.59 
99.15 
19.29 
84.54 
89.26 
90.44 

82.56 
71.55 
67.24 

75.63 
26.20 
77. 32 
92.40 



67.71 



H. Eep. 22G3- 



50 



RECIPROCITY AND COMMERCIAL TREATIES. 



THE FREE LIST OF THE UNITED STATES. 

The following are the principal articles that now appear npon the 
free list of the United States, with the rate of duty last imposed upon 
them, the date upon which it was imposed, and the date upon which it 
was removed : 



Articles. 



Dutiable under- 



Act of- 



Rate of duty. 



Made free of 

duty 
b 7 act of— 



Asphaltum 

Chemicals, drugs, and dyes : 

Orgal or argol, or crude tartar 

Cinchona bark and extracts of 

Quinine, sulphate of 

Other salts of quinine 

Dye woods in crude state 

Indigo 

Opium, crude 

Potash : 

Chlorate of 

Muriate of 

Nitrate of 

Sulphate of 

Soda, nitrate of 

Sulphur, crude 

Cocoa 

Coffee .- 

Copper : 

Ore 

Regulus 

Plates, bars, etc 

Fertilizers : 

Guano 

Phosphates, crude 

Fibers : 

Istle or Tampico fiber 

Jute 

Jute butts 

Manila 

Sisal grass 

Fish: 

Lobsters, canned or otherwise 

Fruits and nuts : 

Bananas 

Olives 

Pine apples 

All other green, ripe, etc., n. e. s 

Cocoanuts 

Cream and Brazil nuts 

Hats, bonnets, etc. : 

Materials for; braids, plaits, etc 

Hides and skins : 

Goat skins 

Hides, dry salted or pickled 

India rubber and gutta-percha : 

Gutta-percha, crude 

India rubber, crude 

Manganese ore, and oxide of 

Mattings for floors 

Nickel ore and matte 

Oils: 

Cocoanut 

Nut oil. 

Olive, for manufacturing purposes . 

Aniline 

Bergamot 

Cassia and cinnamon 

Citronella 

Lemon 

Roses, attar of 

Paper stock : 

Rags, other than wool 

Waste and other paper materials.. 

In bulk 

Salt, in bags, sacks, etc 

Silk, raw, or as reeled from the cocoons 
Spices: 

Cassia and cassiavera 

Cloves 



June 30, 1864 

July 14,1862 
do 

June 6,1872 

.-..do 

July 30, 1846 
Mar. 3, 1857 
July 14, 1870 

June 6, 1872 
Unenumerated 
June 6, 1872 
Mar. 3, 1883 
Mar. 3, 1857 
June 30,1864 
July 14,1870 
do 



Oct. 1, 1890 

....do 

....do 



Unenumerated 
....do 



June 30, 1864 
Mar. 3, 1863 

do 

Aug. 5, 1861 
July 14, 1862 

Unenumerated 



July 
Mar. 
July 
Mar. 
July 
do 



14, 1870 
2, 1861 

14, 1870 
2, 1861 

14, 1870 



Mar. 3, 1883 

Aug. 5, 1861 
do 



....do 

..-.do 

Mar. 2, 1861 
Mar. 3, 1883 
....do 



Aug. 5, 1861 
Mar. 3, 1883 

....do 

Unenumerated 
July 14, 1862 

do 

....do 

....do 

....do 



Mar. 2, 1861 
do 

June 6, 1872 

do 

July 30,1846 



25 per cent 

6 cents per pound. 

20 per cent 

;...do 

do 

5 per cent 

4 per cent 

$1 per pound 



3 cents per pound.. 

20 per cent 

1 cent per pound... 
20 per cent 

4 per cent 

$6 per ton 

1 cent per pound... 
3 cents per pound . . 

\ cent per pound . . . 
1 cent per pound... 
1\ cents per pound. 



10 per cent. 
do 



1 cent per pound. 

20 per cent 

$5 per ton 

$25 per ton 

$15 per ton 



20 per cent. 



10 per cent. 
30 per cent. 
20 per cent. 
10 per cent. 

do 

do 



Mar. 3, 1883. 

Julv 14, 1870. 

"Do. 
July 1, 1879. 

"Do. 
Mar. 3, 1857. 
Mar. 2, 1861. 
Oct. 1,1890. 

Do. 
July 14, 1870. 
Oct. 1,1890. 

Do. 
July 14, 1870. 

Do. 
June 6,1872. 
May 1, 1872. 

Aug. 27, 1894. 
Do. 
Do. 

July 30, 1846. 
July 14, 1870. 

June 6. 1872. 
Oct. 1, 1890. 

Do. 

Do. 

Do. 

July 14, 1870. 

Mar. 3, 1883. 
June 6, 1872. 
Mar. 3. 1883. 

Do. 
June 6, 1872. 

Do. 



20 per cent Oct. 1, 1890 



10 per cent. ! June 6, 1872. 

do Do. 



do 

do 

do 

20 per cent 

15 cents per pound. 



Julv 14, 1870. 

Do. 
June 6, 1872. 
Oct. 1, 1890. 

Do. 



10 per cent ' Julv 14, 1870. 

25 per cent ' Oct*. 1, 1890. 

Do. 

July 14, 1870. 
June 6, 1872. 

Do. 

Do. 
Mar. 3, 1883. 
June 6, 1872. 



do 

20 per cent 

$1 per pound 

do 

50 cents per pound — 

do 

$1.50 per ounce 



Free 

...do 

8 cents per 100 pounds 
12 cents per 100 pounds 
15 per cent 



July 14, 1870 10 cents per pound. . 
do 5 cents per pouud 



Do. 
Do. 

Aug. 27,1894. 

Mar. 3,' 1857. 

Mar. 3, 1883. 
Do. 



RECIPROCITY AND COMMERCIAL TREATIES. 

Free list of the United States — Continued. 



51 



Articles. 



Ginger root 

Nutmegs 

Pepper 

Pimento 

Tar and pitch of coal tar, crude. 
Tea 



Tin, in blocks, bars, pigs, etc 

"Wood: 

Cabinet 

Clapboards, spruce 

Hubs for wheels, posts, lasts, etc . 
Laths 

Boards, planks, and deals — 
Lumber, sawed — 

Hemlock, whitewood, etc- 
Kot planed or finished. 
Planed or finished 



Other lumber not especially pro- 
vided for— 

Not planed or finished 

Planed or finished 



Pickets and palings 

Posts, fence, and paving, etc., of cedar 

Railroad ties 

Rattans and reeds 

Shingles, white pine 

Staves 

Wool: 

Class 1— 

Unwashed 

Washed 

Scoured 

Class 2— 

Unscoured 

Scoured 

Class 3 — 

Value 13 cents or less per pound 

Value over 13 cents per pound 



Dutiable under — 



Act of- 



July 14,1870 



Mar. 
July 

July 

Mar. 
June 
....do 
....do 



2, 1861 
14, 1870 
1, 1893 

3, 1857 
6, 1872 



Oct. 1, 1890 

....do 

Unenumerated 
July 30, 1846 
Oct. 1, 1890 
July 14, 1862 



Oct. 1, 

do.. 

do.. 



1890 



.do 

.do 



Pate of duty- 



Made free of 

duty 
by act of — 



2 cents per pound June 6, 1870. 



20 cents per pound 

5 cents per pound 

do 

20 per cent 

15 cents per pound .... 
4 cents per pound 



8 per cent.. 
$1.50 per M 
20 per cent. 
15 per cent. 



$1 per M. feet 

50 cents addit ional for 

each side planed or 

finished. 



$2perM. feet 

50cents in addition for 

each side planed or 

finished. 

10 per cent 

20 per cent 

....do 

10 per cent 

20 cents per M 

10 per cent 



11 cents per pound 

22 cents per pound 

33 cents per pound 

12 cents per pound 

36 cents per pound 



32 per cent. 
50 per cent. 



Mar. 3, 1883. 

Do. 

Do. 
Oct. 1,1890. 
May 1, 1872. 
Aug. 27,1894. 

Mar. 2,1861. 
Aug. 27, 1894. 

Do. 

Do. 



Do. 
Do. 



Do. 
Do. 



Do. 
Do. 

June 6, 1872. 
Mar. 3,1857. 
Aug.27, 1894. 
^Do. 



Do. 
Do. 
Do. 

Do. 
Do. 

Do. 
Do. 



CONCLUSIONS. 

An examination of the foregoing tables will show the surprising 
extent of the free list of the United States, which now includes nearly 
every natural product and all raw materials imported into this country. 
It will be noticed, too, that the removal of duties from these articles has 
been gradual, and that we have never asked any concessions in return, 
although the governments of the nations which furnished them would 
undoubtedly have made equivalent reductions in the duties they impose 
upon the products of the United States had they been invited to do so. 
This commercial generosity on the part of this Government will furnish 
a basis, however, for asking reciprocal concessions from such nations 
when a revision of the tariff shall again be made. 

Your committee regret that, owing to the manifest impossibility of 
securing legislation from the present Congress, it is not deemed expe- 
dient to report a measure that will answer the urgent demands that 
come from nearly all our industries and from merchants engaged in the 
export trade. It is a well-known fact that political hostility in the other 
branch of Congress w T ill prevent the enactment of any important legis- 
lation. The fate of the revenue bill, the bill to reform the administra- 
tive methods of the customs service, and other measures reported from 
this committee and passed by the House of Representatives demon- 
strates the uselessness of engaging the time and attention of the House 



52 RECIPROCITY AND COMMERCIAL TREATIES. 

at this session even with matters that are demanded by the condition 
of the Treasury and the commercial and industrial conditions of the 
country. Your committee believes also that the application of the reci- 
procity principle to our foreign commerce can be more wisely made in 
connection with a general revision of the tariff than as a separate 
measure. 

In submitting this report and the testimony which accompanies it, 
however, your committee can not refrain from again calling attention 
to the unanimity of opinion among the commercial and industrial asso- 
ciations of the United States that the reciprocity arrangements nego- 
tiated under the tariff act of 1890 were of great benefit to the United 
States 5 that their repeal was a public calamity, and that the policy they 
represented shall be permanently adopted in our tariff legislation. We 
believe that only one commercial organization dissents from this judg- 
ment, and that is in a village in Mississippi. The expressions called 
out by the circulars of inquiry to manufacturers and merchants are 
equally unanimous and significant, and it will be noticed that wher- 
ever one dissents from the principle of commercial reciprocity or its 
application it is due to some motive or reason that affects the individual 
rather than the public. 
Eespectfully submitted. 

Nelson Dingley, Jr. 

Sereno E. Payne. 

John Dalzell. 

Albert J. Hopkins. 

Charles H. Grosvenor. 

Charles A. Kussell. 

Jonathan P. Dolliver. 

George W. Steele. 

Martin JS". Johjnson. 

Walter Evans. 

James A. Tawney. 

John L. McLatjrin. 

Seth W. Cobb. 



VIEWS OF THE MI1TOKITY. 



Mr. Turner, of Georgia, in his own behalf and in behalf of Mr. 
McMillin aud Mr. Wheeler, members of tbe Committee on Ways and 
Means, who are unable to agree to the report of the committee con- 
cerning u reciprocity and commercial treaties," submits the following as 
their views : 

The report of the committee does not propose any scheme of reciproc- 
ity; and we are therefore without information as to the particular 
commercial arrangements which our associates of the majority would 
offer to other countries. If the report is intended merely for the 
campaign, it might have still been proper to formulate some proposi- 
tion which could be understood and discussed. If the situation of 
things alleged against the Senate did not prevent a report on reciproc- 
ity, it ought not to have prevented some statement in detail of what 
is meant by reciprocity. 

As to the alleged reciprocity undertaken under the third section of 
the tariff act of 1890, it is well known that that scheme was inserted 
in the Senate, after having been previously considered and rejected by 
the Committee on Ways and Means of the House. It may also be said 
that that provision transferred to the President the power to levy aud 
impose taxes, at his own discretion, and was rather a system of arbi- 
trary retaliation than a plan of reciprocal trade. We regard the policy 
of that act in this respect as contrary to the spirit of our institutions 
and as a hindrance to commerce. 

The so-called reciprocity agreements under it (we are not aware of 
any treaties made under it) did not reach in any way the great body of 
our commerce, and the great commercial countries with which we trade 
were not included in such agreements. 

As to the effect of these reciprocity agreements, so called, during the 
period of their operation, to wit, from 1890 to 1894, we find it impos- 
sible to accept the conclusions of the majority report, as we do not 
regard them as established by the record of our trade experience. 

The intention of the reciprocity policy was to favor the exportation 
of the agricultural and manufactured products of the United States. 
In order, to prove that those agreements resulted in any advantage to 
this export trade it should be shown — 

1. That the exports to the countries coming into the agreements 
increased more markedly during the existence of the agreements than 
in the years immediately preceding. 

2. That the rate of increase in the exports to reciprocity countries 
was greater than the rate of increase in exports to other and non- 
reciprocity countries havir^ nearly the same economic and geographic 
relations to the United States. 

53 



54 



RECIPROCITY AND COMMERCIAL TREATIES. 



3. That the commodities specially favored by the reciprocity agree- 
ments enjoyed a greater relative increase than other commodities not 
included under those trade arrangements. 

So far from proving these specific and very pertinent points, we 
believe the majority report to have passed them over and to have 
sought in general terms and without special regard to the agreements 
themselves or countries affected to give a foundation to a trade policy 
from which little benefit has accrued to the United States and from 
which even less benefit is to be expected by a renewal. In our opinion, 
a careful examination of the commercial statistics of the last ten years, 
due attention being given to the reciprocity period, will show the fol- 
lowing facts: 

1. That the exports from the United States to the countries coming 
into the reciprocity agreements increased from $30,565,696 in 1886 
to $42,869,823 in 1890, or 40.22 per cent; and from $42,869,823 in 1890 to 
$52,636,108 i n 1894, or only 22.78 per cent. Even when full allowance is 
made for changes in prices and for the economic and financial disturb- 
ances at home and in South America, we can not recognize that the 
agreements have produced any great influence upon exports sent to 
the agreeing countries. 

2. Nor has their influence been more apparent in the trade of the 
United States with other American countries, where reciprocity was 
not applied, as the majority report asserts. If exports to reciprocity 
countries increased 40.22 per cent in the first period and 22.78 per cent 
in the second, exports to other American countries increased 33.22 per 
cent between 1886 and 1890, and 11.32 per cent from 1890 to 1894. 
This comparison shows that commerce with reciprocity countries fol- 
lowed nearly the same vicissitudes as commerce with other American 
countries. 

3. The trade returns further show that the export interest of the 
United States to the agreeing countries increased at a much higher 
rate in the years before reciprocity than during the existence of these 
commercial arrangements. This becomes apparent from the following 
comparison of the increase in the two periods: 

Trade of the United States with reciprocity and other American countries, 1886 and 1S90, 

and 1890 and 1894. 



Countries. 


Imports. 


Increase (+) 
or 

decrease (—). 


Imports. 


Increase (+) 


1886. 


1890. 


1890. 


1894. 


decrease (—). 


Reciprocity countries : 
Central America. . 
West Indies — 
British 


$5, 017, 368 

9, 853, 680 
51.110,780 

0, 250, 675 
41,907,532 

1, 864, 596 


$6, 375, 733 

14,865,018 
53, 801, 591 

6, 004, 639 
59, 318, 756 

4, 326, 975 


Per cent. 

+ 27.07 

+ 50.80 
-f 5.26 
— 3.94 
+ 41.55 
+132. 10 


$6, 375, 733 

14, 865, 018 
53, 801, 591 

6, 004, 639 
59, 318, 756 

4, 326, 975 


$7, 481, 665 

13, 017, 178 
75, 678, 261 

6, 336, 486 
79, 360, 159 

4, 223, 970 


Per cent. 
+ 1.74 

—12. 43 
+33. 69 


Other 


+ 5.53 




+33.77 


Guiana— British . . 


— 2.38 


Total reciproc- 
ity countries . . 
Other American coun- 


116, 004, 631 
75, 302, 310 


144, 692, 712 
93, 682, 138 


+ 24.73 
+ 12.20 


144, 692, 712 
93, 682, 138 


186,097,719 
81, 071, 947 


+28. 62 
—13. 46 






Total American 
countries 


191, 306, 941 


238, 374, 850 


+ 24.60 


238, 374, 850 


267, 169, 666 


+12.08 



RECIPROCITY AND COMMERCIAL TREATIES. 



55 



Trade of the United States 'with, reciprocity and other American countries, 1886 and 1890, 
and 1890 and '1894— Continued. 





Exports. 


Increase ( + ) 

or 
decrease (— ) . 


Exports. 


Increase (+) 


Countries. 


1886. 


1890. 


1890. 


1894. 


decrease ( — ). 


Reciprocity countries: 
Central America.. 
"West Indies — 

British 

Cuba 


$1, 954, 391 

7, 322, 126 
10, 409, 170 
2, 754, 499 
6,541,216 
1, 584, 294 


$4, 170, 308 

8, 288, 786 
13, 084, 415 

3, 247, 755 
11, 972. 214 

2, 106, 345 


Per cent. 
+113.40 

+ 13.20 
+ 25.70 
+ 17.91 
+ 83.03 
+ 32.96 


$4, 170, 308 

8, 288, 786 
13, 084, 415 

3, 247, 755 
11, 972, 214 

2, 106, 345 


$3, 229, 935 

8, 512, 016 
20, 125, 321 

4, 489, 1 10 
13, 866, 006 

2,414,720 


Per cent. 
—22. 55 

+ 3.90 
+ 53.82 


Other 


+^7.92 




+15.82 


Guiana— British . . 


+14. 64 


Total reciprocity 

countries 

Other American 


30, 565, 696 
67, 546, 695 


42, 869, 823 
89, 983, 415 


+ 40.22 
+ 33.22 


42, 869, 823 
89, 983, 415 


52, 637, 108 
100, 168, 412 


+22. 78 
+11.32 






Total American 
countries 


98, 112, 391 


132 , 853, 238 


+ 35.41 


132, 853, 238 


152, 805, 522 


+15. 02 



4. However much individual countries may seem to have benefited 
our export trade, examples of even greater benefits could be found in 
other directions where no special concessions had been made or asked. 

It may be noted that our exports to Canada have increased from 
$36,000,000 in 1891 to $50,000,000 in 1894 without the aid of any reci- 
procity agreement. In the same period the exports to all the West 
Indies rose only from $33,400,000 to $41,000,000; and of those to all 
South America, the value fell from $33,226,000 to $32,644,000. Our 
actual commercial interests with our northern neighbor is greater than 
those with either of the two great divisions of the Indies and South 
America, and have been maintained in the face of every discourage- 
ment the ingenuity of interested legislation could devise, as well as of 
commercial disturbance and disaster. From 1886 to 1891 general trade 
with American countries was on the increase, and would have increased 
had no reciprocity schemes been adopted. Geographically the United 
States is better situated for supplying these markets, and, as the best 
customer for their productions, it would be only natural to look for 
some return trade, and notably in certain lines of specialties which 
have long prominently fed our foreign trade. 

5. If the reciprocity agreements were essential agents in maintaining 
trade with the contracting countries, and if the abrogation of them 
struck a dangerous and immediate blow at this trade, as is asserted, 
how does it happen, it is reasonable to ask, that exports were in some 
cases greater in 1895 than in 1893"? For example the exports were as 
follows: 



Country. 


1893. 


1895. 


Country. 


1893. 


1895. 




$442, 907 

1,713,142 

812, 654 


$615,009 

2, 596, 0J2 

967, 329 




$1,118,054 

1, 108, 733 

12, 339, 584 


$1, 236, 595 
1,318,919 
15, 135, 125 















The exports to the British West Indies, Cuba, Puerto Eico, and 
British Guiana showed a decrease, and in the case of Cuba local con- 
ditions will afford an ample explanation. 

6. Before passing to specific countries and articles it may be well to 
look at the negative side of the reciprocity scheme. Penalty or dis- 
criminating duties were to be imposed upon certain products of such 



56 



RECIPROCITY AND COMMERCIAL TREATIES. 



countries as refused or were unwilling to enter into tlie agreements. 
These countries, under the autocratic powers of the President, were 
affected by these discriminating duties: Colombia, Haiti, and Vene- 
zuela. All coffee, hides, and skins, and sugar imported into the United 
States from those countries paid duty, at once placing their products at 
a decided disadvantage with similar products from the countries 
admitted free of duty. The result was a serious decrease of the 
imports from the three countries, as their most important productions 
for export were covered by the penalty duties. The loss following the 
imposition of duties and the marked resumption of trade after the 
duties were repealed are proved by the following table: 

Imports of coffee into the United States. 



Year. 


From Haiti. 


From Colombia. 


From Venezuela. 


Quantity. 


Value. 


Quantity. 


Value. 


Quantity. 


Value. 


1891 


Pounds. 

12, 642, 544 

14, 978, 577 

7,540 

47, 320 

12, 575, 538 


$1,988,943 

2, 197, 294 

929 

6,971 

1, 806, 304 


Pounds. 
14,549,168 
11, 792, 738 
7, 402, 545 
2, 659, 100 
10, 888. 132 


$2,491,811 

1, 988, 679 

1, 392, 252 

443, 765 

1, 698, 250 


Pounds. 
60, 217. 980 
53, 439, 785 
15, 161, 558 
16, 515, 888 
52, 710, 462 


$10. 814, 874 
9, 095, 042 


1892 


1893 


2, 472, 343 
2, 689, 479 


1894 


1895 


8, 872, 179 





In this single item of coffee a trade with the three penalty countries 
valued at $15,295,628 in 1891 was struck down by the "reciprocity 
policy" to $3,865,524 in 1893 and $3,140,215 in 1894. The value of 
hides and skins imported from Haiti fell from $24,029 in 1891 to 
$17,044 in 1893 and $11,906 in 1894. The imports of hides and skins 
from Colombia were reduced by the penalty duties to but a small part 
of the former importance. In 1891 the value of these imports was 
$767,743 ; in 1893, $665,230, and in 1894, $438,819. One-half of the 
trade with Venezuela in hides and skins was in like manner turned 
away. It is safe to assert that the loss of imports in these articles 
from the three countries amounted to $12,500,000 in each year the reci- 
procity agreements were in force. It is only just to take account of 
this commercial loss in reaching some determination of the results of 
that policy. 

In addition to this heavy commercial loss, the injury to the prestige 
of the United States in these countries must be mentioned. It was 
charged that treaty obligations were broken; that undue advantage 
was taken of the financial needs of the local treasuries, and conces- 
sions forced at a cost which did not fall upon the United States, but 
upon the southern country. It is a serious question whether such a 
policy is calculated to draw the American nations into closer bonds of 
nnion. As a recent writer has stated — 

The general conception of a reciprocity trade has been that it gives an advantage 
to the recipient against the world. In the system of 1890 the taker was permitted 
to enter our markets on an equality with the world at a sacrifice to himself. 



BKAZIL. 

7. It is in the trade with Brazil that the chief justification of the 
reciprocity policy is said to be found. The exports from the United 
States to Brazil increased from $6,541,216 in 1887 to $ll,9f2,214 in 
1890, or by 83.03 per cent. From 1890 to 1894 the exports rose from 



EECIPROCITY AND COMMERCIAL TREATIES. 57 

$11,972,214 to $13,860,006, or 15.8 per cent. It may be stated lliat the 
exports in 1892 were somewhat larger than they were in 1894 (by about 
8400,000), but the year 1894 is the fairer guide, as making what should 
have been the high-water mark of exports, fostered for three years 
under the reciprocity agreement. In value the exports rose far more 
rapidly before than during reciprocity. 

Analyzing the exports in detail according to the concessions made 
in that agreement, the following is the result: 



1890. 



1894. 



Articles admitted into Brazil free of duty 

Articles admitted into Brazil with reduced duties. 
Ot her articles 

Total 



&6, 818, 372 
3, 088, 722 
1,995,402 



$7, 574, 536 
3, 702. 830 
2, 550, 548 



11,902,496 13,827,914 



The curious result is thus gained, that the value of the exports 
admitted free of duty increased $756,164, or 11 per cent; that of the 
exports admitted under reduced duties $614,108 or nearly 20 per cent; 
and that of exports unaffected by the agreement, $555,146, or more than 
27 per cent. 

Xor is this the only doubt cast by the official trade returns upon the 
effect of reciprocity with Brazil. The exports of leading articles imme- 
diately affected by the agreement were actually larger in 1895, after the 
abrogation of the agreement, than in any one year during its continu- 
ance. The manufactures of iron and steel admitted free of duty by 
the agreement were valued at $1,832,329 in 1891; $1,813,739 in 1892; 
$1,443,459 in 1893; $L,005,299 in 1894, and $2,409,640 in 1895. In no 
previous year since 1886 had the purchase by Brazil of car wheels, 
builders' hardware, and locomotive engines been so large as they were 
in 1895. 

In other articles the same denial of the benefits of reciprocity is to 
be met. Larger values of naval stores, of cotton- seed oil, of bacon, of 
pickled pork, of butter, of cotton cloths, of sewing machines, and 
of wire were exported from the United States to Brazil in 1895 than 
in any year since 1886. It can not be asserted that the momentum 
of the reciprocity policy led to this result, for it is expressly asserted 
that the abrogation of that policy was greatly and immediately injuri- 
ous to the trade built up under it. If Brazil is the shining example of 
the results of reciprocity it will be well to bear in mind the follow- 
ing figures, giving the value of all exports from the United States to 
that country: 

1890 (before reciprocity) .• $11, 972, 214 

1891 (four months after reciprocity) 14, 120, 246 

1892 (full reciprocity) 14, 291, 873 

1893 (full reciprocity) 12, 388, 124 

1894 (fullieciprocity) 13,866,006 

1895 (reciprocity abrogated) 15, 165,079 

CUBA. 

8. A second example of the benefits of reciprocity is said to be found 
in our trade with that unhappy island, Cuba, now suffering from a civil 
commotion which has so far interfered with all commerce as to render 
out of the question any comparison of results. It may be stated the 



58 



RECIPEOCITY AND COMMERCIAL TREATIES. 



exports of agricultural products of the United States to that island 
were rapidly increasing in value, as the following table shows: 

Exports from the United States to Cuba. 



Tear. 


Agricul- 
tural. 


Total. 


Year. 


Agricul- 
tural. 


Total. 


1890 


$4, 867, 990 
4, 119, 728 
7, 343, 959 


$12, 669, 509 
11, 929, 605 
17, 622, 411 


1893 


$10, 492. 352 
9, 440, 953 
5, 531, 528 


$23, 604, 094 
19, 855, 237 
12, 533, 260 


1891 


1894 


1892 


1 1895 




1 



If the exports of foreign merchandise to Cuba be included, the trade 
with that island is cited with some plausibility as an example of success 
under reciprocity. The total exports (foreign and domestic) increased 
from $10,409,170 in 1886 to $13,084,415 in 1890, or by 25.7 per cent. 
Between 1890 and 1894 the exports rose from $13,084,415 to $20,125,321, 
or 53.8 per cent. The detail of increase in the various classes of agri- 
cultural products (where the largest gains were made) is shown as 
follows: • 



Tear. 


Breadstuff's. 


Provisions. 


Vegetables. 


Year. 


Breadstuff's. 


Provisions. 


Vegetables. 


1890 

1891 

1892* 


$1, 520, 617 

874, 979 

2, 305, 031 


$2, 907, 802 
2, 787, 608 
4, 214, 481 


$322, 355 
291, 421 
540, 329 


1893* 

1894* 

1895 


$3, 512, 207 
3, 164, 541 
1, 569, 010 


$5, 700, 536 
5,140,215 
3, 245, 854 


$978, 261 
797, 464 
501, 664 








* Year of i 


eciprocity. 









The increase in our trade with Cuba, in our opinion, was due most 
largely to the repeal of the high duty which we had previously levied 
on sugar. The abolition of the tax removed a restriction on commerce. 
The ships which carried more sugar one way carried more of our prod- 
ucts the other way. Buying and selling always take place together 
when restrictions are removed. And the condition of things prevailing 
in Cuba for the past fifteen months, and likely to continue for some 
time, would not admit of satisfactory trade relations under the agree- 
ments mentioned, or any other which might be made with Spain. 



ARGENTINA A COMPETITOR. 

9. Nor is it any more natural to suppose that Brazil would again open 
her markets to the wheat and wheat flour of the United States to the 
exclusion of the same products of other countries. Not only has it an 
important milling interest to protect, but available supplies of both 
wheat and wheat flour are at its very doors, grown and manufactured 
by Argentina. The same reasons which induce our border States to 
import cereals from Canada impel the Brazilian to turn to what is the 
nearest source of supply and what is, as is generally believed, capable 
of supplying wheat at a less cost of production than is possible in the 
United States. This is evidenced by the fact that the existence of the 
reciprocity agreements had no influence in checking the remarkable 
increase in the imports of wheat and wheat flour into Brazil from 
Argentina (1 kilo = 2.2046 pounds). 



RECIPROCITY AND COMMERCIAL TREATIES. 
Imports into Brazil from Argentina. 



59 



Tear. 


Wheat. 


Wheat 

liour. 


Tear. 


Wheat. 


Wheat 
flour. 


18g9 


Kilos. 
4, 209, 762 
91,603,801 
103, 680, 635 


Kilo.*. 
678, 202 
6, 016, 125 


1892 


Kilos. 
113, 226, 286 
232, 774, 000 
475, 113, 000 


Kilos. 
10, 361, 957 

24, 453, 000 


1890 


1893 


1891 


2, 118, 524 


1894 


32, 582, 000 









After reading these figures it might be concluded that all the possi- 
ble benefits to be derived from the reciprocity agreement has inured 
to Argentina and not to the United States, for the exports from the 
United States to Brazil in the same year were: 



Tear. 


Wheat. 


Wheat flour. 


Tear. 


Wheat. 


Wheat flour. 


18S9 


Bushels. 
415, 507 

1, 768, 234 
580. 127 
164, 622 


Barrels. 
678, 972 
687, 342 
722, 309 
918, 547 


1893 


Bushels. 
63, 928 
63 
63 


Barrels. 
837, 039 


1890 


1894 


920 869 


1891 


1895 


775, 425 


1892 











Thus so far from the imports of Argentina wheat and flour into 
Brazil having been of small moment, these returns show that they were 
increasing far more rapidly than imports from the United States. So 
far from the United States enjoying a firm hold in the Brazilian market 
for breadstuff's, this comparison shows that whatever had been the 
increase of exports from the United States to Brazil, the exports from 
Argentina to Brazil were far greater, and as further evidence that the 
wheat flour of the United States, even when admitted free of duty, 
could not compete in Brazil with the flour of Argentina, imported under 
a duty of 5 per cent ad valorem, attention may be called to the follow- 
ing extract from a report prepared by an American citizen resident in 
Eio Janeiro, who makes the flour business a specialty, published in the 
Consular Keports: 

Our reciprocity treaty with Brazil and the duty which the River Plate flour pays 
against the entry free of duty of the American flour should be, it may he said, suffi- 
cient to mate the American flour compete favorably with the former. To this the 
answer is that the United States can not favorably comTpete, under existing circum- 
stances, with the River Plate republics, despite the reciprocity treaty. On the con- 
trary, the United States are at a considerable disadvantage through (1), the consid- 
erably higher freight American flour has to pay (excepting, perhaps, as regards the 
States of Manaos, Para, Piauhy, Marafihao, and Ceara, comprising at the most one- 
seventh of the entire population), and (2) the Argentine miller is almost in direct 
connection with the Brazilian flour consumer, and thus saves the broker's commis- 
sion which the American miller pays in selling to the American export commission 
house, 3 per cent commission, which the American export commission house charges 
for exporting the flour, and inte'rest at 6 per cent per annum, or about 1 per cent for 
the time the American flour and the remittance for -its value are en voyage, both 
those voyages taking about two months more in the case of the United States as 
compared with Argentina and Uruguay. 

EXPORTS OF WHEAT FLOUR. 

10. A special plea is made on behalf of the milling interest of the 
United States as one of two great beneficiaries under the reciprocity 
policy. It would be unjust not to pay a tribute to the remarkable 
growth of that industry, which has enabled it to meet the ever-increas- 
ing domestic demand and to steadily expand in the foreign trade. Six 
million barrels were exported in 1880 and 12,231,711 barrels in 1890. 



60 RECIPROCITY AND COMMERCIAL TREATIES. 

The export promised again to more than be doubled in the ten years 
from 1890 to 1900, and in 1894 reached the remarkable total of 16,859,533 
barrels. In 1895 the returns of exports fell to 15,268,892 barrels— a loss 
of about 1,600,000 barrels. 

That the rapid increase in the exports after 1890 was only in small 
measure due to the reciprocity agreements a little consideration will 
show. In 1891 the exports of flour to such American countries as 
accepted reciprocity amounted to 1,847,089 barrels ; in 1893 the same 
countries took 2,516,618 barrels, and in 1894 2,797,435 barrels. The total 
gain in flour exports to these countries during the reciprocity period 
was thus 950,346 barrels. But the total exports of flour in 1891 were 
11,344,034 barrels, and in 1894 16,859,533 barrels— a gain of 5,515,499 
barrels. Only 17.2 per cent of this gain was due to increased exports 
to reciprocity countries. 

As a further illustration of how small, in relation to the whole trade, 
this wheat-flour export under reciprocity has been it may be stated 
that the export to reciprocity countries constituted 16.28 per cent of 
the total exports in 1891 ; 15.14 per cent in 1893, and 16.5 per cent in 
1894. After three years of reciprocity these countries took a very little 
larger share of the flour exports than they had taken in 1891. Instead 
of explaining the exports of 1895 to be due to the abrogation of the 
reciprocity agreements it would be more accurate to explain them by 
the rapid rise of an aggressive competition and by improved local con- 
ditions of supply. 

No attention has been given to the agreement with Germany nor to 
the advances made by France. Legislation directed against American 
agricultural products has been the rule for more than twelve years and 
becomes more obvious during a period of agricultural depression in 
those countries. Further, we do not believe that the agreement entered 
into with Germany had any influence upon exports from the United 
States, and it would be idle to give further examination to that branch 
of the question than is afforded in the following extract : 

In 1891 the crops of Europe were extremely poor and we exported in 1892 great 
quantities of wheat and flour. Later than this a tariff war between Germany and 
Russia broke out, and Germany bought grain from us intead of from Russia. Then 
the Argentine Republic appeared as a great exporter of wheat and Germany was one 
of her best customers, what she bought of Argentina of course diminishing her 
requirements from us. Finally, the tariff war with Russia was terminated and Ger- 
many resumed buying grain as usual from Russia and her purchases from us fell off 
rapidly. 

CONCLUSIONS. 

We conclude that there is little evidence of any marked benefits 
flowing from the reciprocity agreements. 

That the plea in its favor based upon the flour-milling interest is not 
justified by statistics. 

That we can see no goocj. reason for entering into commercial alliances 
restricting the freedom of commercial legislation in this country. 

That uniform rates of duty, applying equally to the products of all 
nations, is the only safe policy to pursue, as it can give occasion to no 
complaints of unfair treatment, such as must arise under a scheme of 
discriminating duties. 

H. G. Turner. 
Benton McMillin. 
Joseph Wheeler. 



APPENDIX A. 



RECIPROCITY WITH CANADA. 



61 



APPENDIX A. 

RECIPROCITY WITH CANADA. 



STATEMENT BY HON. EDWARD FARRER, OF TORONTO. 

In compliance with your request, I beg to send the following memo- 
randum with respect to the position of the reciprocity question in 
Canada. 

It is necessary for a proper understanding of the case to make a few 
preliminary observations on the past history of the subject. 

The Canadian Provinces did comparatively little trade with the 
United States prior to 1846. For one thing, there were no railroads 
between the two countries nor bridges across the frontier rivers. The 
main reason, however, was that down to 1846 Great Britain encouraged 
colonial exports to her market by means of preferential duties, receiving 
in return preferential treatment for her manufactured goods in the 
colonial markets. The policy was a survival from the age when colonies 
were valued simply as dumping grounds for the metropolitan trader. 
The products of one colony had also a preference in the market of 
another. The British West India planters were constantly complaining 
that they had to pay more for Canadian flour and barrel staves than the 
price in the United States; Canada, that British West India sugar 
which she had to import was dearer than the sugar of Cuba and Brazil. 
Incidentally, the policy was of considerable benefit to the shipping 
interests of Montreal and Quebec, a good deal of American produce 
being forwarded from those ports to England and palmed off as Cana- 
dian by means of forged certificates of origin in order to get the advan- 
tage of the lower duties levied on Canadian produce. Canada did not 
make much progress, however, under this seemingly favorable system. 
The chief objection to it was that it left Canada poor by depriving her 
of the opportunity of establishing manufactures of her own. On the 
other hand, it was alleged by British free traders that the policy, while 
compelling the British consumer to pay an exorbitant price for food 
and raw material, was of no practical benefit to the British manufac- 
turer, because, although he had a preferential duty in the colonies, it 
was of little value owing to the fact that his goods were cheaper as a 
rule than those of foreign rivals. The system came to an end with the 
adoption in 1846 of free trade by England. A school of Imperial Fed- 
erationists in England and the colonies at the present day advocates 
the restoration of this policy. 

A MEANS OF CONSOLIDATING THE BRITISH EMPIRE. 

The objection to it from the British point of view is that it would 
exalt the price of food and raw materials to the British manufacturer 
and artisan, and at the same time diminish England's trade with for- 
eign countries, which is much more valuable to her than her trade with 
the colonies. 

63 



64 RECIPROCITY STATEMENTS. 

In round numbers, England's imports from foreign countries average 
75 per cent of her total imports, while her imports from the colonies 
average 25 per cent; her exports to foreign countries amount to 70 per 
cent of the whole export trade, her exports to the colonies to 30. 
England's trade with her colonies is not advancing any more rapidly 
than her trade with foreign countries. India, it must be remembered, 
is not a colon y, properly so called, but a dependency whose tariff is 
regulated by England. The preferential policy would therefore apply 
only to the self-governing colonies of Canada, Australia, New Zealand, 
and South Africa. The objection from the Canadian point of view is 
that, by reducing the duties on British goods, the policy would tend to 
destroy Canadian manufactures. Moreover, as it would involve differ- 
ential duties against the United States, Canadians take it for granted 
that the United States would retaliate by excludiug Canadian exports 
to the United States, and possibly by abrogating the bonding privilege. 

EFFORTS TO OBTAIN A TREATY WITH THE UNITED STATES. 

During the existence of this preferential arrangement with England, 
Canada made persistent efforts to obtain a reciprocity treaty with the 
United States. From 1816 to 1854 the British Government was fre- 
quently importuned to do something at Washington, and the adminis- 
trations of Monroe, John Quincy Adams, Jackson, Harrison, Tyler, 
Polk, Taylor, and Fillmore were all approached by the British minister. 
In 1848, after the abolition of the preferential policy by England, the 
Government of Upper Canada pointed out to Lord Elgin, the Governor- 
General, that a the Imperial Parliament having adopted the principle 
of free trade in wheat and other products of the soil, the effect will be 
that in future the manufacturing districts in the Eastern States of the 
American Union will frequently be the best market for the agricultural 
products of Canada. It can not be desired by any friend of British 
connection that the Canadian people should find themselves excluded 
from the best market for their products by a tariff of high if not pro- 
hibitory duties." 

About this time a somewhat formidable annexation movement arose 
in Montreal. In a manifesto to the Canadian people the leaders pointed 
out that protection to Canadian products in the markets of the United 
Kingdom having ceased, and protection to Canadian manufactures 
being, in their opinion, impracticable, nothing remained for Canadians 
but reciprocal free trade in natural products with the United States, 
or political union with that country. They assumed that reciprocity 
was not obtainable, and that if obtained it would yield but a meager 
installment of the advantages which might be secured by political union. 

The manifesto stated — 

That political union would render Canada a field for American capital, into which 
it would enter as freely for the prosecution of public works and private enterprise 
as into any of the present States of the Union; it would equalize the value of real 
estate upon both sides of the boundary, thereby probably doubling at once the 
entire present value of property in Canada; it would render our rivers and canals 
the highway for the immigration to and exports from the West, to the incalculable 
benefit of our country; it would introduce manufactures into Cauada as rapidly as 
they have been introduced into the Northern States; and to Lower Canada especially, 
where water privileges and labor are abundant and cheap, it would attract manu- 
facturing capital, enhance the value of property, and agricultural products and give 
remunerative employment to what is at present a comparatively nonprodueing pop- 
ulation. The value of our agricultural products would be raised at once to a par 
with that of the United States, white agricultural implements and many of the nec- 
essaries of life would be greatly reduced in price. The value of our timber would 
also be enhanced by free access'to the American market, where it commands a high 
price but is subject to an onerous duty. At the same time our shipbuilders at 



RECIPROCITY STATEMENTS. 65 

Quebec and on the Great Lakes would find an unlimited market in all the ports of the 
American Continent. A simple and economical State Government, in Avhich direct 
responsibility to the people is a distinguishing feature, would be substituted for a 
system at once cumbrous and expensive; and in place of war and the alarms of war 
with a neighbor, there would be peace and amity between this country and the 
United States. Changing a subordinate for an independent position, we would take 
our station among the nations of the earth. England is our parent State, with whom 
Ave have no equality, but toward Avhom we stand in the simple relation of obedience. 
But as citizens of the United States the public service of the nation would be open 
to us, a field for high and honorable distinction on which we and our posterity might 
enter on terms of perfect equality. 

This manifesto was signed by men who afterwards played a distin- 
guished part in Canadian politics. It was received calmly by the Eng- 
lish press. The London Times of October 31, 1819, said: 

We have been taught wisdom by experience, and the most valuable as well as the 
most costly of our lessons has been taught by the barren issue of a conflict with a 
province which from remonstrance drifted to rebellion, and crowned rebellion with 
independence. We should not go to war for the sterile honor of retaining a reluc- 
tant colony in subjection. We should not rmrchase an umvilling obedience by the 
outlay of treasure or of blood. 

THE RECIPROCITY TREATY OF 1854. 

The annexation movement died away when Lord Elgin obtained from 
Mr. William L. Marcy the reciprocity treaty of 1851. In 1847 the Cana- 
dian Legislature, whose tariff had down to about that time been framed 
in England for the supposed benefit of the English manufacturer, 
removed the existing differential duties against goods corning from the 
United States and placed them on the same footing as goods coming 
from England; the duties on United States manufactures being lowered 
from 12£ to 7 J per cent, and those on the manufactures of Great Britain 
being augmented from 5 to 7£ per cent. 

By the treaty of 1854 the following articles were admitted free of duty 
between the two countries : 

Grain, flour, and breadstuffs of all kinds. Fish of all kinds. 

Animals of all kinds. Products of fish, and of all other creatures 

Fresh, smoked, and salted meats. living in the water. 

Cotton, wool, seeds, and vegetables. Poultry and eggs. 

Fruits, dried and undried. Stone and marble in its crude and un- 

Hides, furs, skins or tails, undressed. wrought state. 

Butter, cheese, tallow. Slate. 

Lard, horns; manures. Ores of metals of all kinds. 

Pitch, tar, turpentine, ashes. Coal. 

Timber and lumber of all kinds, round, Firewood. 

hewn, and sawed, manufactured in Plants, shrubs, trees. 

whole or in part. Pelts, wool. 

Rice, broom corn, and bark. Fish oil. 

Gypsum, ground or un ground. Dyestuffs. 

Hewn or wrought or unwrought burr or Flax, hemp, and tow, unmanufactured. 

grindstones. Rags. 
Unmanufactured tobacco. 

The treaty gave to the inhabitants of the United States fishing privi- 
leges on the Canadian seaboard, as well as the right to navigate the Eiver 
St. Lawrence and the canals of Canada as freely as British subjects, and 
to British subjects a similar right to navigate Lake Michigan so long as 
the privilege to navigate the Kiver St. Lawrence should continue. No 
export duty was to be levied on timber cut on American territory and 
floated down to be shipped from New Brunswick. The treaty was to 
remain in force for ten years. The President of the United States issued 
a proclamation bringing it into force on March 16, 1855. It applied to 
Newfoundland as well as to the Canadian Provinces, viz, Upper and 
Lower Canada. Xova Scotia. XewBruuswick, and Prince Edward Island. 
H. Pep. 2203 5 



66 RECIPROCITY STATEMENTS. 



OBJECTIONS FROM BOTH COUNTRIES. 

The only objection to the treaty from Canada was that it did not give 
Nova Scotia vessels access to the American coasting trade, and that it 
did not go far enough in the direction of establishing commercial inter- 
course between the two countries, the Canadian farmer being desirous 
of seeing free interchange of manufactures so as to get cheaper factory 
goods from the United States in exchange for his raw products. 

The objections on the part of the United States are set forth in the 
report of Mr. E. H. Derby to the Treasury Department, 1866. The 
principal objection was that after the treaty had gone into effect the 
Government of Upper and Lower Canada, the most populous of the 
Provinces, augmented the duties on manufactures to the detriment of 
American factories. The Congressional Committee on Commerce also 
complained of discriminating tolls on the Welland Canal, by which 
goods destined via Oswego and Ogdensburg for New York and Boston 
paid higher tolls than those levied on goods going to Quebec or Mon- 
treal. This committee recommended the adoption of a zollverein or 
commercial union between the two countries whereby Canada would 
have been placed in precisely the same position, commercially speaking, 
as a State of the Union. The objections raised by this committee 
called forth a reply from Sir A. T. Gait, the Canadian finance minister. 

The Provinces made extraordinary progress under the treaty. During 
the period 1850-1854 the yearly average imports of the United States 
from the Provinces was $7,000,000, and the increase during these five 
years 58 per cent. During the reciprocity period the yearly average 
of the imports by the United States was $26,300,000, and the increase 
on the first year of the period shown by the last year was 261 per cent. 
During the period 1867-1891, the treaty having come to an end in 1866, 
the yearly average of the imports by the United States from Canada was 
$36,700,000, and the decrease on the first year of the period shown by 
the last year was 8 per cent. During the period of 1850-1854, before 
the treaty, the yearly average of the imports by the British North 
American Provinces from the United States was $10,150,000, and the 
increase during the period 135 per cent. During the term of the treaty 
the yearly average of the imports by the Provinces from the United 
States was $29,000,000. 

INCREASE OF TRADE DURING THE TREATY. 

To put it in another shape, during the twelve years taken as com- 
prising the whole period of the treaty the imports of Canada from the 
United States averaged $29,000,000, the exports $26,000,000, the total 
trade $55,000,000 per annum, and, comparing these figures with those 
of the period of 1850-1854, there was an increase in the average annual 
trade of 122 per cent. No doubt the antislavery war, 1861-1865, created 
an exceptionally brisk demand in the United States for Canadian prod- 
ucts; on the other hand, the war bounties attracted thousauds of 
Canadians to the American armies, and to that extent reduced the pro- 
ducing power of the country. All Canadians agreed that the treaty 
was beneficial in the highest degree in the Provinces. A report of the 
committee of the Canadian privy council (February 19, 1864), which 
was intended to rouse the British Government to do something to pre- 
vent the abrogation of the treaty, began as follows : 

It would be impossible to express in figures with auy approach to accuracy the 
extent to which the facilities of commercial intercourse created by the reciprocity 



RECIPROCITY STATEMENTS. 67 

treaty have contributed to the wealth and prosperity of this Province; and it would 
he difficult to exaggerate the importance which the people of Canada attach to the 
continued enjoyment of these facilities. Nor is the subject entirely devoid of polit- 
ical significance. Under the beneficent operations of self-government which the 
later policy of the Mother Country has accorded to Canada, in common with other 
colonies possessing representative institutions, combined with the advantages secured 
by the reciprocity treaty of an unrestricted commerce with our nearest neighbors 
in the natural productions of the two countries, all agitation for organic changes has 
ceased, all dissatisfaction with the existing political relations of the Provinces has 
disappeared. 

The concluding words refer to the melting away of the annexation 
movement amid the prosperity flowing from reciprocity. The report of 
the committee went on to speak of "the connection which is usually 
found to exist between the material prosperity and the political content- 
ment" of a country, and hinted that if the treaty were not renewed, 
annexation might lift its head again. The annexationists, it might be 
added, used to say that the Southern Democrats had granted the treaty 
in order to quench the annexation movement, being averse to seeing the 
North reenforced by the addition of provinces which long before had 
repudiated slavery. 

EFFORTS TO RENEW THE TREATY. 

As the period of the natural existence of the treaty drew to an end, 
the British minister at Washington, at the instance of Canada, made 
every effort to secure its prolongation. Canadian ministers visited 
Washington and offered, while admitting American natural products 
free, to admit also a large line of American manufactures, and to allow 
Congress to tax Canadian natural products at the frontier in order to 
put the American farmer on an equality with the Canadian, who had 
no internal revenue or other war taxes to pay, and consequently could 
raise field products for a lo vver cost. They also offered the United States 
a sort of joint control over the canals of Canada. But on January 18, 
1865, notice was given by the United States Government of its inten- 
tion to abrogate the treaty on the ground "that it was no longer for the 
interests of the United States to continue the same in force," and all 
attempts at arranging a prolongation came to an end in February, 1866, 
the treaty expiring on March 17. 

TROUBLES OVER THE FISHERIES. 

The treaty had removed the 3-mile limit imposed by the convention 
of 1818 and given to United States fishermen liberty to take all kinds of 
fish along the shores and in the bays and harbors of the Provinces 
of Upper Canada and Lower Canada, Nova Scotia, New Brunswick, 
and Prince Edward Island, and adjacent islands, with permission to 
land for commercial purposes and for drying their nets, curing their 
fish, etc. The salmon, shad, and river fisheries were, however, reserved 
exclusively for British subjects. Similar liberties, with similar reserva- 
tions, were given to all British subjects on the eastern seacoasts of the 
United States north of the thirty-sixth parallel of north latitude. 

Shortly after the treaty was repealed, considerable friction arose over 
the exclusion of American fishermen from the 3-mile limit and the com- 
mercial privileges referred to. The Canadian Government placed 
cruisers in the gulf, which were reenforced by British men-of-war. 
This condition of affairs came to an end, however, on the conclusion of 
the Washington treaty of 1871, admitting Canadian fish free into 
United States ports in consideration of the fishery privileges being 
again extended to United States fishermen. It will be remembered 



68 RECIPROCITY STATEMENTS. 

also that the Halifax commission awarded Canada and Newfoundland 
the sum of $5,500,000 as further compensation for granting the use of 
its inshore fisheries and coasts during the existence of the treaty of 
1871. 

In reply to complaints by the Canadian Government that the Wash- 
ington treaty did not do enough for Canadian fishermen in return for 
the privileges accorded to American, the British Government (dispatch 
of Lord Kimberley, Secretary of State for the colonies, to the Governor- 
General, June 17, 1871) implied that Canada had been harassing the 
American fishermen, with the object of worrying Congress into remov- 
ing the duties on Canadian fish. 

" Canada, 7 ' said Lord Kimberley, " can not reasonably expect that this 
country (Great Britain) should for an indefinite period incur the con- 
stant risk of serious misunderstanding with the United States, imperil- 
ing, perhaps, the peace of the whole Empire, in order to endeavor to 
force the American Government to change its commercial policy." 

COMMERCIAL UNION PROPOSED. 

Between 1866 and 1871 various propositions were made by the Domin- 
ion Government, looking to a new reciprocity treaty. In 1870 Mr. L. S. 
Huntington, a prominent Liberal member of the Dominion Parliament, 
afterwards a minister of the Crown, moved a resolution in favor of com- 
mercial union — that is, absolute free intercourse in all kinds of goods, 
natural or manufactured, with the United States — but it was voted 
down. In the debate an editorial from The London Times was read, to 
the effect that if Canada did enter into a commercial union with the 
United States, involving tariff discrimination against British manufac- 
tures, Great Britain would not object. 

In 1874, the British minister at Washington and Mr. George Brown, of 
Toronto, acting for the Canadian Government, arranged a commercial 
treaty, but it was not passed by the United States Senate. When 
Canada adopted a protective tariff in 1879, Sir John Macdonald let it 
be understood that one of his main objects was to secure reciprocity. 
A resolution of his read that the Canadian tariff, "moving as it ought 
to do in the direction of a reciprocity of tariffs with our neighbors, so 
far as the varied interests of Canada may admit, will greatly tend to 
procure for this country eventually reciprocity of trade." Further- 
more, he placed an offer of reciprocity in certain natural products in 
the protective tariff, a plan adopted by the Government prior to 1854. 

In 1887-88, Mr. Joseph Chamberlain, now colonial secretary, and Sir 
Charles Tupper, baronet, while negotiating a fishery treaty, which was 
defeated in the United States Senate, urged the consideration of an 
agreement for reciprocal trade, but the United States representatives 
declined to discuss the subject. 

At the Canadian elections of 1891, Sir John Macdonald went to the 
polls with the announcement that he was going to obtain a renewal of 
the reciprocity treaty of 1854-1866, and later on colleagues of his had 
interviews with Mr. Blaine, which came to nothing. While they were 
anxious to obtain reciprocity in natural products, they were averse to 
reciprocity in manufactures, ostensibly on the ground that free trade 
in manufactures with the United States would necessitate tariff dis- 
crimination against the manufactures of Great Britain, and thus weaken 
the political tie with her. Probably, however, their real objection to 
reciprocity in manufactures was that Canadian manufacturers could 
not compete with those of the United States, and Sir John's ministry, 
like the ministry in power to-day, was a manufacturer's cabinet. 



RECIPROCITY STATEMENTS. 69 



PLATFORM OF THE LIBERAL PARTY. 

In 1888 the Liberal party of Canada began to agitate for what it 
called unrestricted reciprocity, i. e., a wide measure of free trade 
between the two countries in manufactures, as well as in natural prod- 
ucts. It was to counter this proposition that Sir John Macdonald, in 
1891, opened negotiations with Mr. Blaine. In 1893, the Liberals, in 
convention at Ottowa, adopted the following platform on the reciprocity 
question, which is their platform to day: 

That having regard to the prosperity of Canada and the United States, as adjoin- 
ing- countries with many mutual interests, it is desirable that there should be the 
most friendly relations and broad and liberal trade intercourse between them ; that the 
interests alike of the Dominion and of the Empire would be materially advanced by 
the establishing of such relations; that the period of the old reciprocity treaty was 
one of marked prosperity to the British North American colonies; that the pretext 
under which the Government appealed to the country in 1891, respecting negotia- 
tions for a treaty with the United States was misleading and dishonest and intended 
to deceive the electorate; that no sincere effort has been made to obtain a treaty, 
but that, on the contrary, it is manifest that the present Government, controlled as 
they are by monopolies and combines, are not desirous of securing such a treaty; 
that the first step toward obtaining the end in view is to place a party in power 
who are sincerely desirous of promoting a treaty on terms honorable to both coun- 
tries ; that a fair and liberal reciprocity treaty would develop the great natural 
resources of Canada, would enormously increase the trade and commerce between 
the two countries, would tend to encourage friendly relations between the two peo- 
ples, would remove many causes which have in the past provoked irritation and 
trouble to the Governments of both countries, and would promote those kindly 
relations between the Empire and the Republic which afford the best guaranty for 
peace and prosperity; that the Liberal party is prepared to enter into negotiations 
with a view to obtaining such a treaty, including a well-considered list of manufac- 
tured articles, and we are satisfied that any treaty so arranged will receive the 
assent of Her Majesty's Government, without whose approval no treaty can be made. 

COMMERCIAL INDEPENDENCE OE CANADA. 

The Liberal party also favors the commercial independence of Canada, 
i. e., the exercise by Canada of the treaty-making power in her own 
interests. As matters stand at present, Canada can not negotiate with 
the United States or any other foreign country except with the approval 
of the British Government and through its diplomatic agents. Further- 
more, Canada can not make a commercial treaty with a foreign nation 
without taking in Britain, who does the negotiating, and extending her 
concessions not only to Britain but to countries to which Britain has 
favored-nation arrangements covering the colonies. And Britain must 
likewise participate to the full in the tariff concessions made by foreign 
countries to Canada. Under such conditions, of course, it is difficult 
to treat with foreign nations. Why should Americans, for instance, 
have to grant to Britain everything they are prepared to give to Canada 
in return for special concessions from Canada, Britain giving none in 
return! The case was well stated by Congressman Bowman, of Massa- 
chusetts, in the House of Bepresentatives, June 1, 1880: 

We in the United States [he said] made fish free to Canadians because, as a con- 
sideration, we received the right of fishing in Canadian waters. Can England, or 
France, Germany, or the Hawaiian Islands come in and say that we are therefore 
bound to make fish free to them? That can not be maintained for a moment. We 
reply to those countries that when they can do for us exactly what Canada does, or 
as much as Canada does, they will have claims on our consideration, but until then 
they have none. 

Britain herself makes treaties with foreign countries that do not 
apply to or include Canada, but Canada is not at liberty to reverse the 
process and make treaties that do not include Britain. Britain allows 



70 RECIPROCITY STATEMENTS. 

Canada and the other self-governing colonies to levy the same dnties 
upon her goods as upon the goods of foreign countries. What Liberals 
desire is that Canada should be permitted to enjoy the prerogatives of 
a sovereign nation in commercial matters, so that she may deal directly 
with foreign markets and make such arrangements with them as may 
suit the interests of her own people without reference to the effect, 
which at most would be trifling, upon the interests of the British manu- 
facturer. Mr. Chamberlain has hinted that tariff discrimination against 
British goods, which would be involved in the commercial independence 
of Canada, would lead Englishmen to sever the political tie, and the 
threat is used by the Tory party at Ottawa to discredit the Liberal 
proposition. At the same time, there is no doubt that the feeling in 
favor of commercial independence is growing. 

THE ATTITUDE OF NEWFOUNDLAND. 

To complete this rough sketch of the history of the reciprocity ques- 
tion, it may be well to say a word about Newfoundland. Newfound- 
land does not belong to the Canadian Confederation, but is a 
self-governing colony by herself. 

In a speech iu Maine, before he became Secretary of State in Mr. 
Harrison's Cabinet, Mr. Blaine laid down the principle that the British 
colonies in North America should not be allowed to enjoy the commer- 
cial advantages of American statehood while retaining their European 
allegiance. But he was afterwards willing to make an exception of 
Newfoundland to some extent. The treaty he arranged with the New- 
foundland Government through Sir Julian Pauncefote in 1890 provided 
for the free admission into the United States of dry cod, herring, lob- 
sters, cod and seal oil, seal skins, salmon trout, etc., in return for the 
free admission into Newfoundland of implements, printing presses, gas 
engines, raw cotton, and crushing mills from the United States. The 
treaty also established maximum rates which were not to be exceeded 
on American flour, pork, bacon and hams, beef, indian meal, salt, ker- 
osene, and other articles. Newfoundland was also to concede to Amer- 
ican fishermen the right to touch and trade and procure supplies in 
Newfoundland. 

Mr. Blaine's object apparently was to extend American trade and 
also to get around the prohibitions imposed upon American fishermen 
by Canada and Newfoundland under article 1 of the treaty of 1818. 
Under their literal interpretation of article 1 the colonies prohibit 
American fishing vessels from landing on their coasts except to seek 
shelter, obtain wood and water, and make repairs. But fresh bait is 
necessary to a successful trip after mackerel or after cod on the Banks; 
it is also convenient for a Boston or Gloucester vessel to be able to 
transship her catch somewhere near the scene and hurry back to her 
fishing; ships' stores and ice for the bait have to be replenished, new 
sails may be required, illness may disable members of the crew and 
their places must be filled. Eor these and other reasons commercial 
privileges on the coast of Canada and Newfoundland are desirable. 

Mr. Blaine's design was to obtain these privileges from Newfound- 
land; they can be obtained in Canada, but only on payment of a 
tonnage tax, which American fishermen consider unjust under the cir- 
cumstances. 

The treaty with Newfoundland was, however, pigeonholed by Lord 
Salisbury at the instance of the Government at Ottawa. It pointed 
out to Lord Salisbury that a separate arrangement with Newfoundland 



RECIPROCITY STATEMENTS. 71 

would create discontent in the Canadian seaboard Provinces and prac- 
tically destroy the Canadiau contention under the treaty of 1818; 
Canadian fishermen would be paying high duties under the American 
tariff, while the fishermen of Newfoundland would be receiving special 
compensation in the shape of removal of duties for their abandonment 
of the literal interpretation of article 1, to which both Newfoundland 
and Canada had hitherto been pledged. Newfoundland was annoyed 
at the failure of the treaty through Canada's interference, and for a 
short time a tariff war was carried on between the two colonies. 



RECIPROCITY IS OF GREAT IMPORTANCE TO NEWFOUNDLAND. 

The fishermen of France, who use the French Islands of Miquelon as 
their base of operations for pursuing the Bank cod fishery, receive large 
bounties from the French treasury on the dry cod which they sell on this 
side of the Atlantic and also on the dry cod they sell in European mar- 
kets. The Newfoundlanders can not compete abroad with the bounty- 
fed cod of France. The United States would under reciprocity be the 
best market for all their fish. It is also the best market for Newfound- 
land minerals. 

In the treaty of commerce, arranged by Sir Edward Thornton and 
Mr. Brown in 1874, it was proposed, among other things, that there 
should be reciprocal trade in certain manufactured articles as well as in 
certain natural products, but it was provided that similar manufactures 
coming from Britain should also be admitted free into Canada; that is, 
there was to be no discrimination against Britain. The manufactures 
selected for free exchange were, however, for the most part, manufac- 
tures in which Britain could not compete successfully with the United 
States in the Canadian market. The list was as follows: 

Agricultural implements, axles, boots and shoes, boot and shoe mak- 
ing machines, buffalo robes, cotton grain bags, cotton denims, cotton 
jeans, unbleached; cotton plaids, cotton ticking, cottonade, unbleached; 
cabinet ware and furniture, carriages, carts and wagons, fire engines, 
felt covering for boilers, gutta-percha belting and tubing, bar iron, hoop, 
pig, puddled, rod, sheet, and scrap iron; iron nails, spikes, bolts, etc.; 
iron castings, india-rubber belting and tubing; locomotives, lead, sheet 
or pig; leather harness and saddlery; mill, factory, and steamboat en- 
gines and machines; manufactures- of marble, stone, slate, or granite; 
manufactures of wood, or of wood along with metal materials; mangles, 
washing machines, wringing machines, and drying machines; printing- 
paper for newspapers, paper-making machines, printing type presses 
and folders, paper cutters, rolling machines, page-numbering machines, 
stereotype and electrotype apparatus; refrigerators; railroad cars, 
carriages, and trucks; satinets, or wool and cotton; steam engines; 
steel, rod or cast, and steel plates and rails; tin tubing and piping; 
woolen tweeds ; water wheels, machines, and apparatus. 

In speaking in the Canadian Senate upon this abortive treaty, Mr. 
Brown said : 

These articles were selected with, a triple object; the first was, that they should 
be articles of common daily use among the people or affect the prosecution of our 
leading industries; the second, that they should be of such a character as to be dif- 
cult to smuggle across the lines and easy of identification as a genuine production of 
Canada or the United States; the third, that they should be, as far as possible, the 
production of branches of industry natural to Canada or the United States, and in 
which a considerable intertraffic between the two countries might reasonably be 
expected. 



72 RECIPROCITY STATEMENTS. 

A sliding scale, by which the existing custom duties were to be grad- 
ually reduced, was provided for in order to give the manufacturers some 
time for preparation for the change. 

The Liberal party would be prepared to negotiate a treaty with the 
United States on somewhat similar lines, if it should be returned to 
power at the approaching elections. It is safe to say that it would be 
prepared to negotiate on even broader lines. It fully realizes that the 
proposition of the present Government at Ottawa for a reciprocity in 
natural products only is scarcely fair to the United States, for most of 
the gain would be to Canada; that any equitable arrangement must 
permit the United States to pay in factory goods for the natural prod- 
ucts and raw material coming from Canada. Moreover, such a treaty 
would be beneficial to the farmers, lumbermen, fishermen, and miners 
of Canada in providing them with cheaper factory goods than they can 
now obtain in Canada. 

EFFECT OF THE WILSON LAW IN CANADA. 

When the Wilson bill, reducing the duties on certain Canadian farm 
products, was adopted Mr. Haycock, the leader of the farmers' move- 
ment (Patrons of Industry) in Ontario, said that "Mr. Wilson had done 
more for the Canadian farmer than had ever been accomplished for him 
by the Government of Canada." 

For many Canadian farm products the United States is the only 
available market. That is, as regards these articles, the United States 
is a monopolist buyer, and a monopolist buyer, like a monopolist seller, 
can fix his own price. Whatever the United States duty may be on 
such articles, therefore, the Canadian farmer has to pay it. Sir John 
Macdonald used to illustrate this by taking the case of two farmers, 
one on each side of the boundary line. The farmer on the American 
side, getting his barley to Albany, Oswego, and New York free of duty, 
invariably got a higher price than his neighbor on the Canadian side of 
the road by the amount of the duty. He also used to point out, as in 
his speech in the Canadian Parliament on the Washington treaty, that 
Canadian fishermen, for a like reason, got just whatever the Boston 
and Gloucester buyers chose to give them for their fresh fish. They 
had no other market for their fresh mackerel, etc., and were obliged, 
therefore, to pay the duty on entering it. 

Since the adoption of the McKinley agricultural schedule in 1890, 
efforts have been made to find a market in England for Canadian farm 
products that used to go to the United States, but for such commodities 
England is only a second-best market, and the figures which go to sbow 
that the exports of Canadian farm products to her are increasing, do 
little more than testify that trade is being diverted from its natural 
channel to the detriment of the Canadian farmer. Efforts have also 
been made to establish a trade with Australia, and a bonus of $120,000 
a year is given to a steamship line running between British Columbia 
and Sydney, New South Wales. Australia, however, is too far off. Last 
year only $6,000 worth of Canadian farm products were exported to that 
colony. Lord Farrer, formerly permanent secretary of the Government 
Board of Trade in England, and an expert on colonial trade, states the 
matter thus : 

Canada and England are separated by the Atlantic; Canada and the United States 
are distinguished, rather than separated by a bridged and navigable river and by an 
imaginary line. Trade between England and Canada has to overcome natural diffi- 
culties ; trade between Canada and the United States would be unchecked but for 
artificial difficulties. Even now, Canadian trade with the United States increases 



RECIPROCITY STATEMENTS. 73 

more rapidly than her trade with the United Kingdom. The people of Canada and 
of the United States are similar in race, in language, and in habits, and are becoming 
more so daily. 

CANADIAN TRADE WITH THE UNITED STATES.. 

The figures bear out Lord Farrer's view. The aggregate trade of 
Canada in 1894-95 with the United States was greater than her aggre- 
gate trade with Britain, notwithstanding that the United States taxes 
Canadian products while England admits them free, and notwithstand- 
ing also that for fifty years England has been pouring loans into Canada, 
the principal of which comes in the form of manufactures and the interest 
on which is remitted to England in the shape of natural products. The 
exports to England last year were $01,900,000; to the United States 
$41,300,000. The imports from Britain were $31,000,000; from the 
United States, $54,600,000. 

Had trade between Canada and the United States been as free as 
between Canada and Britain, both exports to and imports from the 
United States would, of course, have been indefinitely larger. The 
total foreign trade of Canada last year was $219,000,000 so that her 
trade with the United States is over 40 per cent of the whole. 

In 1888 and 1889, just prior to the McKinley Act, the exports to the 
United States, notwithstanding the duties, were higher than the exports 
to the United Kingdom. The United States is "out of sight" the best 
market for Canadian minerals. Last year the total export of Canadian 
minerals amounted in value to $6,980,000, of which those sent to the 
United States constituted $6,270,000. 

A royal commission appointed by the Government of the Province of 
Ontario to consider the best means of developing the mineral resources 
of the Province, reported strongly in favor of free trade in minerals 
with the United States. In fact, it as much as said that without free 
trade with the-United States there could be no mineral development to 
speak of in Canada. The United States is, or would be, the best mar- 
ket for Canadian fish, lumber, horses, sheep, lambs, eggs, barley, wool, 
beans, hay, potatoes, fruit, poultry. If it were free, Canadian live cat- 
tle would go to Chicago, Buffalo, and Boston, and Canadian cheese, 
which now goes almost exclusively to England, would find sale in the 
large cities of the Northern States. Manitoba hard wheat could then 
be sold at the neighboring mills at Minneapolis, instead of, as now, 
having to go by rail 2,000 miles to the Atlantic seaboard, and thence to 
England. 

Mr. Martin, member of Parliament for Winnipeg, said in a recent 
speech in Parliament that if trade with the United States were free, 
Manitoba would be able to raise a large barley crop for export, which, 
ripening earlier than wheat, would be less exposed to the risk of the 
frosts which sometimes' damage the wheat crop. British Columbia 
would benefit equally by closer trade relations; indeed, as it is, the 
bulk of her export trade is done with the neighboring Pacific States. 

EMIGRATION OF CANADIAN POPULATION. 

It is believed also by most Canadians that by thus allowing the 
people of Canada to turn their labor and natural resources to the best 
account reciprocity with the United States would tend to check the 
exodus of population. According to the United States census, there 
were 980,000 natives of Canada and Newfoundland in the Union in 



74 RECIPROCITY STATEMENTS. 

1890. Fully 900,000 of these must have been natives of Canada. By 
the Canadian census of 1891, the population of Canada was 4,800,000, 
of whom 4,200,000 were native born. Thus nearly 25 per cent of the 
native Canadian race is in the United States. The United States is 
also absorbing persons of European birth who settle in Canada for 
a while and then cross the line. They are not credited to Canada by 
the United States census, but to the countries of their birth, although 
they represent a heavy drain upon Canadian national life. It is esti- 
mated that there must be 500,000 such persons in the United States. 
It is not to be supposed that reciprocity would absolutely stop the 
exodus, but it would certainly diminish it. There will always be a 
disposition among inhabitants of northern climates to turn their faces 
to the sun. 

THE NATIONAL CONDITION OF TRADE. 

A glance at the map is sufficient to show that nature designed the 
two countries to have intimate trade relations. A line drawn from the 
top of Minnesota to the top of Maine includes nearly all the inhabited 
portion of Ontario and Quebec, the two oldest and richest provinces. 
Maine projects like a wedge to within 40 miles of the Lower St. Law- 
rence, leaving the seaboard provinces within the New England area. 
Ontario projects like a wedge 400 miles into American territory. It and 
Quebec are separated from the seaboard provinces by a stretch, of bar- 
ren land from Manitoba and Lake Superior by a thousand miles of rock 
and muskeg, while Manitoba in turn is separated from British Colum- 
bia by the liocky Mountains. The Dominion is thus broken up geo- 
graphically into four blocks, each of which, if left alone, would find its 
natural market in the States adjoining it to the south. Ontario would 
not deal with Nova Scotia or Mauitoba so much as with New York, 
Pennsylvania, Michigan, Illinois, and Ohio, which contains twenty mil- 
lions of customers right at her door. She can talk to some of them by 
telephone and reach all by rail or water in a few hours. Buffalo has 
as many inhabitants as there are between Lake Superior and theEocky 
Mountains, on Canadian soil; Chicago nearly twice as many as there 
are in the Canadian seaboard provinces. Yet in order to get trade, 
Ontario, the pillar of Confederation, is sundered from those rich mar- 
kets and saddled with gigantic burdens for a railway to Manitoba and 
another all the way to Cape Breton. It is much the same with the sea- 
board provinces. They could take their fish and other produce by sea 
to Boston in a few hours and exchange it for cheap manufactures. 
Instead of that they are compelled to pay a duty on their fish and farm 
products on entering Boston, to return empty, and procure dear manu- 
factures from the distant markets of Montreal and Toronto, which buy 
little from them but canned lobsters. New England is also the natural 
market for their coal and iron. 

The Conservative party adopted protection, so it said, because it 
was unable to obtain closer trade relations with the United States and 
in order to force the United States to concede them. The protectionist 
interests are now so strong politically that, to-day, the party places 
protection first and reciprocity last. 

PROBABLE BENEFITS OF A RECIPROCITY ARRANGEMENT. 

It is not, perhaps, within my province to enumerate the benefits 
which Jihe United States would obtain from closer trade relations with 



RECIPROCITY STATEMENTS. 



75 



Canada. The principal imports from the United States at the present 
time are as follows : 



■ye- 



Live animals. 

Indian corn. 

Wheat, corn meal, and other grains. 

Clocks. 

Cordage and twine. 

Drugs and dyes. 

Fancy goods. 

Fruits. 

Glass and glassware. 

Hats, caps, and bonnets. 

Jewelry. 

Brass, and manufactures of. 

Gold and silver, and manufactures of. 

Lead, and manufactures of. 

Oils and paints. 

Paper. 

Silk manufactures. 

Tobacco. 

Wood manufactures. 

Books and periodicals. 

During the last few years Canadian imr>orts from the United States 
have grown, while those from Britain have fallen off. 

The imports from the United States for the fifteen years, 1881-1895, 
were $752,000,000 ; the imports from Britain during the same period, 
$638,000,000. 

American iron and steel is displacing British in the Canadian market, 
and there is a growing call for American machinery and other manu- 
factures, which are in many cases better adapted than British to Cana- 
dian conditions and requirements. With a liberal reciprocity treaty 
favoring American manufactures, there can be no doubt that the imports 
from the United States would rapidly increase, to the benefit alike of 
the Canadian farmer and the American artisan. 



Oats and 

Buttons. 

Carriages. 

Coal aud coke. 

Cotton, and manufactures of. 

Electric apparatus. 

Flax, and manufactures of. 

Furs. 

Gutta-percha, manufactures of. 

Raw hides. 

Leather, and manufactures of. 

Copper, and manufactures of. 

Iron and steel, and manufactures of. 

Musical instruments. 

Provisions. 

Seeds. 

Sugar. 

Watches. 

Woolen manufactures. 



THE PERCENTAGE OF DUTY ON THE VALUE OF THE GOODS, 

dutiable and free, entered for consumption in 1894-95 was 1G.99. The 
percentage of duty on the dutiable goods alone entered for consumption 
was a fraction over 30. The duty on pig iron is $1.48 per long ton and 
the Ottawa government gives a bonus to Canadian furnaces of $2.24. 
The average of the duties on iron and steel goods of all kinds is 26 
per cent. Implements are taxed 20 and 35 per cent, the 20 per cent 
duty being levied on reapers and the like. The average of the duties 
on leather goods is 20 per cent, on silks 30, on paper and manufactures 
of paper 30, on gutta-percha and rubber goods 30, on flax, henrp, and 
jute manufactures 22, on earthenware and china 30, on cotton manu. 
factures 29. The duty on bituminous coal is 60 cents per ton ; anthracite 
and coke are free. The average of the duties on carriages, buggies, and 
railroad cars is 30. Wheat is taxed 15 cents per bushel, corn 7J cents, 
pork 3 cents, kerosene 6 cents per gallon, with a duty on the barrels. 
The average duty levied on imports from Great Britain exceeds the 
average on imports from the United States, owing to so much more 
raw material being bought from the United States. As a rule, farm 
products command a higher price in the United States than in Canada. 
In a recent speech in Parliament Mr. McMillan, a Liberal member, 
showed that during the thirteen years 1882-1894 wheat averaged 92.3 
cents in the United States as compared with an average of 85.6 cents 
in the Province of Ontario; and so with oats, cattle, live hogs, etc. 



76 RECIPROCITY STATEMENTS. 

The price of barley is usually higher at Buffalo than at Toronto by the 
amount of the United States duty and the cost of transportation from 
Toronto to Buffalo. 

The protective tariff in Canada has not fulfilled expectations. The 
home market is small, numerically, and scattered over a vast area. 
Hence the cost of selling and shipping goods is exorbitant and the 
cost of manufacturing them high, because manufacturers are unable to 
specialize their labor and machinery for the production of special lines. 
It happens, also, that coal is found only at the extremities of the 
Dominion, in Nova Scotia and British Columbia, 4,000 miles apart. 

The percentage of increase in the population of the Dominion between 
1881 and 1891, with protection in force, was only 11.76, or less than the 
percentage in an old and overcrowded community like England and 
Wales, and not half as great as the percentage in the United States. 
It can not be doubted that the slow progress of Canada is due in great 
part to her economic disabilities. What would rich commonwealths 
like New York, Pennsylvania, or Ohio have amounted to, if, from the 
beginning, they had been cut off from the industrial and commercial life 
of the rest of the continent and thrown back entirely upon themselves? 

SITUATION OF THE FISHERY QUESTION. 

It is generally allowed in Canada that the North Atlantic fishery 
question is in an unsatisfactory position. At present American fisher- 
men are allowed commercial privileges in Canadian ports, on payment 
of a tonnage tax of $1.50 per ton. At the same time, Canada allows 
the French fishermen of the Miquelon Islands, the sole remnant of 
French Empire in North America, to enjoy full commercial privileges 
in Canadian ports, without receiving any equivalent whatever from 
France; and Canadian fishermen enjoy similar privileges to the fullest 
extent in American ports. The bonding privilege, under which a large 
railroad and canal traffic has sprung up, is of great importance to the 
inland Provinces of Canada, which are shut off from the Canadian sea- 
board by the five months of winter. No doubt it is also an advantage 
to the people of New England, Minnesota, and Illinois, who are served 
to some extent by Canadian railways, as also to the people of the 
Western States, who send a good deal of produce to the seaboard by 
the St. Lawrence route. It is felt, however, owing to the peculiar posi- 
tion of the Canadian railroads in respect to the interstate commerce 
act, that the bonding privilege is in some danger. 

The Liberal party thinks that these and other questions affecting the 
welfare of the two countries might be placed upon a satisfactory basis 
by means of a general scheme for closer commercial intercourse. They 
do not discuss the question of political union in their platforms or in 
their speeches before the public, and have nothing to say on that sub- 
ject. But they do think that both the United States and Canada would 
be benefited by the adoption of more intimate trade relations, and, 
should they obtain power a few weeks hence, will, no doubt, take an early 
opportunity of placing the case before the Government at Washington. 

Edwd. Farrer. 

Toronto, April 6, 1896. 



APPENDIX B. 



TRADE WITH THE ARGENTINE REPUBLIC AND URUGUAY. 



77 



TRADE WITH THE ARGENTINE REPUBLIC. 



STATEMENT OF MR. WILLIAM E. CURTIS, OF WASHINGTON. 



No attempt was made to apply the retaliatory provision of the reci- 
procity section of the tariff act of 1890 to any other country except 
Colombia, Venezuela, and Haiti, for the reason that the President 
believed the duties imposed by them alone were onerous to American 
commerce and reciprocally unequal and unreasonable. There was some 
correspondence with the Argentine Republic. That Government con- 
tended that the duties it imposed upon our peculiar products, such as 
lumber, refined petroleum, agricultural implements, machinery, and 
other manufactures of iron and steel, were not unreasonable in view of 
the tax we imposed upon wool, which was its principal item of export 
to the United States. It was intimated at various times during the 
negotiation that if the United States would remove the duty from wool 
the Argentine Government would make generous concessions in favor 
of our manufacturers, but such an arrangement was not authorized by 
the law. 

In January, 1894, the Argentine minister in Washington submitted 
to the Secretary of State a memorandum, setting forth the mutual 
economical advantages that would result to the United States and to 
that country by the free introduction of Argentine wool into our markets, 
and in a subsequent communication, dated January 30, 1894, informed 
him that the Argentine Congress, in adopting its tariff for that year, 
had included crude petroleum in the list of articles to be admitted free 
of duty. He said: 

The exemption of crude petroleum is of the greatest importance to American com- 
merce, for it will he remembered that in the Argentine Republic it is employed as a 
fuel in competition with English coal, and the annual importation is as follows : 

Tons. 

1888 333,798 

1889 658,054 

1890 514,582 



Tons. 

1891 350,680 

1892 520,771 



LIBERAL OFFERS IN EXCHANGE FOR FREE WOOL. 

The Argentine Government desires to strongly insist upon its opinion that the ap- 
proval of the action in respect to wool will extraordinarily increase the volume of 
the commercial relations between the two countries, and permit the manufactured 
products of the United States to enter into active competition with similar articles 
of European origin in the rich Argentine market. 

It is also expected that the Argentine Congress will exempt from the payment of 
duties lumber, lubricating and fuel oils, and refined petroleum from this country, 
which articles are consumed in Argentine upon a large scale. 

This communication was forwarded by the Secretary of State to the 
Committee of Ways and Means on the 3d of February, 1894, while what 
is known as the Wilson bill was under consideration. 

On the 30th of July, 1894, while that bill was pending in the Senate 
the Secretary of iState forwarded to the Finance Committee another 
communication from the Argentine minister inclosing a cablegram from 
the minister of foreign affairs at Buenos Ayres, with reference to the 

79 



80 RECIPROCITY STATEMENTS. 

vote of the Senate concurring in the vote of the House of Bepresenta- 
tives concerning the removal of duty on wool, as follows: 

Received telegram with great satisfaction. Government will use efforts in order 
that Congress shall respond with all possible exemption. Fthtatcdo Cn^r 

The Argentine minister, commenting upon this telegram to the 
Secretary of State, says : 

It shows that my country proposes to advocate additional reductions of duty in 
respect to products of the United States, and a commission appointed to study the 
reform of the customs laws has already publicly stated its opinion in favor of the 
reduction, to an important extent, of duties upon refined petroleum, agricultural 
machinery, and white pine and spruce lumber, which articles are at present among 
the principal purchases of the Argentine Republic in the markets of the United 
States. 

In communicating to the Secretary of State these satisfactory tidings, I permit 
myself to remember that they confirm the predictions which I had the honor to 
submit to the upright judgment of the President of the United States, in the 
interview wherewith he honored me on the 13th of November, 1893, and to the .Sec- 
retary of State in various communications, oral and written, wherein I stated that 
the free admission of wools and other agricultural products would give a new and 
reciprocally advantageous aspect to the commerce of the two nations, energetically 
stimulating it in favor of spontaneous and reciprocal parliamentary courtesies. 

NO NOTICE TAKEN OF THE ARGENTINE OVERTURES. 

Keith er the Senate nor the House of Representatives appears to have 
taken any notice of these friendly advances from the Argentine Gov- 
ernment. On the contrary, they proceeded to remove the duty on wool 
without even acknowledging the courteous disposition of that country 
to make corresponding concessions in favor of the products of the 
United States. As a consequence the Argentine Government swal- 
lowed its chagrin and dropped the subject. It could not be expected 
to force friendly concessions upon the United States, nor to insist upon 
making them when their offers were received with contemptuous indif- 
ference. Therefore no action was taken by the Argentine Congress in 
the way of reductions or discriminations in the interest of the farmers 
and manufacturers of the United States. 

The very natural result was that when Mr. Buchanan, the very active 
and able minister of the United States at Buenos Ayres, went to the min- 
ister of foreign affairs a few months later to ask that some concessions 
might be made in the duties upon imports from the United States in the 
tariff of 1895, he was coolly informed that the Argentine Government did 
not consider itself under any obligations to the United States because 
of the removal of the duty upon wool, its chief article of export from 
that country to this. He explained that his Government understood 
the situation, and that our Congress did not remove the duty with any 
intention to benefit them, but merely as a political measure, and in 
response to the demands of public sentiment in the United States. 

The sensitive temperament of the Argentine people on this subject, 
however, was indicated by a letter which Mr. Dominguez, the estimable 
charge d'affaires of the Argentine Eepublic in this city, wrote to the 
Secretary of State and forwarded to the chairman of the Senate Com- 
mittee on Finance, in January last, remonstrating against the proposed 
restoration of the duty on wool, u in order that there should not be any 
interruption in the good feeling now happily existing, and to avoid dis- 
turbing the commercial relations between the two countries" — that is, 
the Argentine Eepublic and the United States. He asks that his coun- 
try be exempted from the operation of the bill if a duty upon wool is 
insisted upon, and says: 

In this way the relations with the sister Republic would not be affected, and the 
Argentine Republic would supply, in a moderate degree, the wants of this market, 



RECIPROCITY STATEMENTS. 



81 



while the United States, taking- advantage of the field open to American manufac- 
turers in that country, would continue to expand her exports. 

EFFECT OF FREE WOOL UPON THE ARGENTINE TARIFF. 

In December, 1894, the Argentine Eepublic, as usual, revised its 
tariff, and instead of responding in a generous manner to the removal 
of the duty on wool as promised by the minister of foreign relations 
and the Argentine minister in Washington, while the tariff law of 1894 
was under consideration, the only reduction of any significance was 
from 60 to 20 per cent ad valorem in the duties on cotton goods, which 
are not imported in any quantity from the United States. 

There was a reduction on petroleum from 2 to 1£ cents per liter, 
which is about a gallon. Harness, boots and shoes, ready-made cloth- 
ing, furniture, wagons, and carriages, which we export to a very small 
amount, were reduced from 60 to 50 per cent ad valorem, but the duty 
on lumber, which is the largest of our exports, was increased from 5 to 
15 per cent, and railway supplies and other articles of iron and steel 
were taken from the free list and taxed 5 and 10 per cent ad valorem. 

Mr. Vicente J. Dominguez, the accomplished charge d'affaires of the 
Argentine Eepublic at Washington, in a letter printed herewith com- 
mends the generosity of his Government in reducing the duty on yellow 
pine from 25 to 15 per cent ad valorem, and advancing the duty on 
white and spruce pine, " which goes chiefly from Canada," from 5 to 15 
per cent. He gives figures to show that the Argentine Government thus 
surrenders $256,000 in duties annually in favor of the United States. 

The facts are that during the fiscal year ending June 30, 1895, the 
exports of lumber of all kinds from the United States to the Argentine 
Eepublic (yellow pine is not given separately) were valued at $873,408. 
In 1894 the total was $868,038; in 1893, $979,131; in 1892, $408,851, 
and in 1891, $586,821, which allows an average of $743,249 per year for 
the last five years. 

Assuming these shipments to be entirely of yellow-pine lumber — 
which they were not, as they included several other kinds of lumber, 
timber, and manufactures of wood — the maximum duty formerly imposed 
by the Argentine Government under its 25 per cent rate would have 
been an average of $185,649 a year. This duty was recently reduced 
from 25 to 15 per cent. Therefore the amount actually surrendered by 
the Argentine Government was the difference between 15 and 25 per 
cent of $743,249, which is 10 per cent of that amount, or $74,324.90. 

PROPORTION OF FREE IMPORTS INTO THE UNITED STATES. 

On the other hand, the imports into the United States from the 
Argentine Eepublic during the last five years, free and dutiable, were 
as follows : 



Year — 


Free. 


Dutiable. 


Total. 


1891 


$4, 503, 828 
3, 921. 023 
3, 843, 843 
2, 687, 999 
6, 835, 982 


$1,470,716 

1, 422, 175 

1, 395, 252 

809, 031 

839, 288 


$5, 976, 544 


1892 : 


5, 343, 798 


1893 


5, 239, 095 
3, 497, 030 


1894 


1895 


7, 675, 270 





Of the $839,288 in imported merchandise which paid duty in 1805, 
$224,172 was third-class wool entered before the Wilson-Gorman law 
went into effect, aud $589,887 was linseed and flaxseed. Previous to 
last year the imports into the United States were almost entirely wool 
and hides. The total value of hides and skins imported in 1895 was 
H. Eep. 2263 6 



82 



RECIPROCITY STATEMENTS. 



$4,423,154. The last duty imposed upon hides by the United States 
was 10 per cent ad valorem, in 1861, which was repealed in 1872. If 
this duty were still applied the hides imported from the Argentine 
Eepublic would have brought $442,315.40 into the Treasury last year. 
The imports of wool last year from the Argentine Eepublic amounted 
to 25,745,854 pounds, and the amount of duty that would have been col- 
lected upon it had not that article been placed upon the free list was 
$2,021,401, as follows: 





Pounds. 


Duty. 


Class 1 


6, 643, 544 

221, 810 

18, 880, 491 


$1, 461, 578 
26, 618 


Class 2 


Class 3 


533, 205 






Total 


25, 745, 854 


2, 021, 401 





Thus, on the two articles wool and hides the United States surren- 
dered a total of $2,463,716 in duties in favor of the Argentine Eepublic, 
while the latter Government surrendered $74,324, or, according to Mr. 
Dominguez, $256,000, in favor of the United States. 

This is not reciprocity, but at the same time our Congress did not 
ask the Argentine Eepublic to reciprocate. On the contrary, the 
United States Senate ignored the friendly advances of that Govern- 
ment. Therefore, while we have nothing to complain of, this incident 
may point a moral for future tariff legislation. If the tariff law of 
1894 had contained a clause providing that the removal of the duty on 
wool should apply only to imports from such countries as made recip- 
rocal concessions in favor of the products of the United States, there 
would have been other changes in the tariff of that country. 

THE ARGENTINE TARIFF. 

The Argentine tariff is ad valorem, and all goods pay a duty of 25 
per cent except such as are specified. 

The following statement shows changes in the rates of duty upon 
principal articles of export from the United States in 1894 and 1895, 
before and after the removal of the duty on wool by the Congress of 
the United States: 



Articles. 



1894. 



1895. 



Bacon 

Boots and shoes, leather goods, harness, etc 

Butter per kilo . . 

Candles do 

Carriages, wagons, and other vehicles 

Cotton fabrics 

Manufactures of 

Eaw - 

Furniture 

Hams 

Hats, caps, and ready-made clothing 

Iron and steel exclusively for railways and tramways 

Scrap ! .' 

Kerosene per liter. . 

Lard per kilo . . 

Machines of all kinds 

Oil, vegetable, of all kinds -. 

Silk, manufactures of 

Stockings and knitted stuff 

White pine and spruce 

Yellow pine 

Wool, manufactures of 

Woolen yarn for weaving 

a 25 per cent ad valorem in 1894 ; 20 centimes per kilo in 1895. 
6 25 per cent ad valorem in 1894 ; 25 centimes per kilo in 1895. 



'.rcent. 


Per cent. 


(a) 


(a) 


60 


50 


30 


10 


15 


10 


60 


50 


25 


20 


60 


50 


5 


2.5 


60 


50 


(b) 


(6) 


60 


50 


Free. 


10 


Free. 


5 


2 


1.5 


18 


8 


5 


10 


12 


10 


60 


50 


40 


45 


5 


15 


25 


15 


60 


50 


Free. 


5 



RECIPROCITY STATEMENTS. 



83 



In the tariff laws of the Argentine Republic for the year 1895 appear 
the following items, which were not classified in the tariff of 1894. The 
duty which would probably have applied is given. 



Articles. 



Machines of all kinds of a value of 100 pesos and more 

Machines and motors of all kinds for agricultural purposes 

Wire of iron or steel, barbed, for fences 

Iron in ingots, for foundries 

Twine for reaping machines 

Cod and similar lish, salted 



Per cent. 


Per rent. 


5 


10 


Free. 





5 


5 


(a) 


5 


Free. 


5 


(b) 


4 



a 2 centimes per 10 kilos. b 30 centimes per kilo. 

REDUCTIONS IN THE ARGENTINE TARIFF IN 1895. 

The following statement shows the rates of customs duties imposed 
upon certain articles of import into the Argentine Republic during the 
years 1894 and 1895, before and after the removal by the United States 
of the tariff on wool : 



Articles. 



Cheese centimes per kilo. 

Coal 

Flour, wheat, or maize 

Iron and steel, and manufactures of: 

Arms and accessories thereof per cent. 

Plows do . . . 

Machinery and material for public illumination ...do... 

Machinery and apparatus for industrial purposes do . . . 

Machinery of all kinds with steam, gas, compressed-air, or electric motors, per 
cent 

Motors imported separately per cent. 

Extra or exchange parts for the machines above enumerated do. . . 

Sewing machines and needles for same do... 

Wire from No. 1 to Xo. 13, in rolls or on bobbins . do... 

Wire, galvanized do. . . 

Jewelry do . . . 

Lead do... 

Locomotives 

Matches : 

Wax centimes per kilo . 

Wood : do . . . 

Petroleum, crude, and naphtha 

Paper : 

For writing and printing centimes per kilo. 

Straw, blotting:, gray for bags, packing, etc., wall and colored do. . . 

Pickles of all kinds do... 

Preserves of all kinds do. . . 

Salt : 

Common centimes per hectoliter. 

Table centimes per 1 00 kilos . 

Wire tacks centimes per kilo . 



.30 
Free. 
Free. 

50 
5 
.05 

.05 

.05 
.05 
. 05 
.05 

.05 

(«) 

.05 
(b) 
Free. 

.8.) 

.40 

Free. 

.03 
.15 
.15 
.30 

.20 
2.00 
.03* 



1895. 



a 0.005 centime per kilo. 



b 0.00} centime per kilo. 



In the tariff laws of the' Argentine Republic for the year 1895 appear 
the following items, which were not classified in the tariff of 1891. The 
duty which would probably have applied is given. 



Articles. 



Machines of all kinds of a value of 100 pesos and more 

Machines and motors of all kinds for agricultural purposes. 

Wire of iron or steel, barbed, for fences 

Iron in ingots, for foundries 

Twine for reaping machines 

Cod and similar fish, salted 



9. 2 centimes per 10 kilos. 



b 30 centimes per kilo 




1895. 



Per cent. 
10 
5 



84 ,- RECIPROCITY STATEMENTS. 

The Argentine tariff for 1898 is the same as that for 1895, with a few 
modifications, the only changes that affect the interests of the United 
States being an increase of the duty upon walnut lumber from 5 to 15 
per cent ad valorem and the reduction of the duty upon horserakes 
from 25 to 5 per cent. 

There is always more or less confusion in comparing the official trade 
statistics of the Argentine Republic with those of the nations with 
which it has commerce. This is due to the practice of that Govern- 
ment of assessing duties upon the local value instead of the export 
value of imported merchandise, which represents commissions and 
transportation as well as original cost. 

VALUE OF THE ARGENTINE MARKET. 

The value of the market of the Argentine Republic to the manufac- 
turers of the United States, as well as the danger that our agricultural 
interests have to fear from its competition in the grain ports of Europe, 
is beginning to be thoroughly understood, and a brief examination of 
the lists of imports into that country will demonstrate how great an 
advantage was thrown away when the Fifty-third Congress rejected 
the friendly advances of that Government. 

The total imports of merchandise into the Argentine Republic from 
all countries in 1894, the last year for which the statistics are obtain- 
able, amounted to $89,478,660, of which about 38 per cent came from 
Great Britain, 22 per cent from France, 12 per cent from Germany, 8 
per cent from Belgium, and less than 6 per cent from the United States. 

The Argentine Republic is purely an agricultural and pastoral coun- 
try. The absence of fuel and water power will permanently prevent 
the establishment of mechanical industries to any great extent, and 
therefore the people will always be compelled to buy abroad whatever 
they require in the way of manufactured merchandise. They are a lux- 
urious and, in some respects, an extravagant nation. In past years 
they have in turn enjoyed extraordinary prosperity and suffered from 
severe financial and commercial depression. But the capacity of the 
Republic for the production of food is practically unlimited and 
depends upon the numbers of the population and the expansion of the 
cultivated area. But they must buy in foreign markets everything that 
is needed to wear and use in their households, their machinery and 
implements and other articles of iron and steel, their building material 
(both lumber, hardware, and roofing), their agricultural implements 
and tools, their railway supplies, including locomotives and cars; their 
drugs and medicines, their textile fabrics, their kerosene and coal, and 
many other articles of luxury and necessity, and the greater portion 
could be furnished by the United States if our merchants and manu- 
facturers were able to compete with those of Europe on even terms. 

ARGENTINE TRADE WITH EUROPE. 

Great Britain has always enjoyed the bulk of the trade, and a glance 
at her exports to the Argentine Republic show that the total has not 
fallen below $28,000,000 since 1883; that in 1890 they reached the 
enormous sum of $42,000,000, and in 1894 they amounted to $22,550,000. 
The largest proportion, usually more than half of the imports from 
Great Britaki, are textile fabrics and cotton and woolen goods, but they 
include a great deal of iron and steel, railway materials, machinery, 
agricultural implements, drugs and chemicals, coal, tin and copper 
wares, and other articles that we can furnish just as well as the British. 



RECIPROCITY STATEMENTS. 85 

The imports into the Argentine Bepnblic from France are mostly 
luxuries, and there has recently been a falling off in the total, which is 
explained by the financial depression and the inability of the people to 
indulge in articles that are not actually needed. In the flush times 
between 1887 and 1890 the imports from France surpassed $30,000,000. 
Now they vary from $12,000,000 to $15,000,000, and consist of sugar, 
wines, jewelry, dress goods, leather, paper, perfumery, and other fancy 
articles. 

The imports from Belgium are mostly cotton and woolen fabrics, 
ready-made clothing, machinery, railway material, and other articles 
of iron and steel, paints and oils, and other similar articles, which usu- 
ally aggregate $10,000,000 or $12,000,000, and have been as high as 
$14,000,000. 

The trade with Germany has at times reached nearly $16,000,000, and 
it usually varies between $10,000,000 and $12,000,000. The imports 
consist of articles similar to those that are bought in Belgium, the chief 
items being wearing apparel of all kinds, machinery, railway supplies, 
and other manufactures of iron and steel, wire for fences, printing 
paper, sugar, starch, and beer. 

ARGENTINE TRADE WITH THE UNITED STATES. 

Compared with the trade of the nations named, the imports of the 
United States are very insignificant, and the total exports for 1895, 
$4,456,163, were less than they were in 1873, when they amounted 
to $5,167,616. And this notwithstanding the fine promises of the 
Argentine Government in case of the removal of the duty on wool. 
We send them practically nothing that they can not buy elsewhere. 
They are compelled to come here for their soft lumber, their petroleum, 
their naval stores, and they buy our agricultural implements because 
we furnish the best that the world affords. There are, however, some 
lines of goods which have entirely disappeared from the table of our 
exports, such as sugar, starch, furniture, tobacco, lard, etc., upon which 
the tariff is so high that they can not be exported with profits. The tariff 
on lard, furniture, and tobacco, for example, is 50 per cent ad valorem, 
and almost every other article they get from us has a corresponding 
duty. 

On the other hand, nearly everything that is imported into the 
United States from the Argentine Bepublic since the passage of the 
tariff acts of 1894 passes free through our custom-houses. The removal 
of the dutv on wool increased the imports from the Argentine Bepublic 
from $3,497,030 in 1894 to $7,675,270 in 1895. In 1894 only $809,031 of 
our imports from the Argentine Bepublic were subject to duty, and in 
1895 only $238,288. 

It will thus be seen that in the matter of tariff the advantage is 
entirely on the side of the Argentine Bepublic in our commerce with 
that country; and, in its eagerness to remove the protection that had 
made our sheep growers prosperous, the last Congress, by the removal 
of the duty on wool, without asking reciprocal concessions, was throw- 
ing away an opportunity to promote our export trade that would have 
been greatly appreciated by the manufacturers of the United States. 

Although we may compete in the Argentine markets with either 
Great Britain, France, Germany, or Belgium on even terms, the condi- 
tions are such that it is absolutely necessary for our exporters to have 
some advantages to offset those enjoyed by their European competi- 
tors, and the advantages they require can only be obtained through 
legislation of our Congress and diplomatic negotiation. 



86 RECIPROCITY STATEMENTS. 



RAPID DEVELOPMENT OF ARGENTINE INDUSTRIES. 

Tlie commercial prospects and possibilities that are offered in that 
market are well suggested in an address recently made by Mr. William 
Wilson, chairman of the Mortgage Company, of the River Plate, to the 
stockholders of that corporation in London. He said : 

Notwithstanding a serious decline in the market value of almost all Argentine 
products, the productive industry of the country has during the last few years — 
during years when there were exceptional causes for its contraction — greatly 
expanded, and it is now rapidly expanding. The expenditure of the years of boom 
has not all "been thrown away; the immigration introduced, the pure-bred cattle and 
sheep imported, the ports made, and the railways constructed are to-day helping the 
progress of the country, and promise, with the return of immigration, with peace 
and a fairly good Government, to make the progress greater and more rapid than the 
most sanguine in Europe believe. Addressing you here in 1890, I said that it was 
estimated that there were in the Argentine Republic 9,100 square miles of land under 
cultivation; to-day it is estimated that there are over 16,000 square miles. Mr. 
Goodman, an authority on wheat growing, tells us that in fourteen years an import 
of 177,000 tons of wheat was converted into an export of 1,600,000 tons. There is no 
such record in any other country. In 1890 wheat growing first began to assume 
large proportions. This season 32,000,000 bushels were grown; in 1893,90,000,000 
bushels were produced. 

The amount of wheat exported in 1894 was 1,600,000 tons, and in 1895, owing to a 
poor crop, the export was little over 1,000,000 tons. The Argentine Republic has 
suddenly taken third place as an exporter of wheat, Russia and the United States 
having the first and second places, and the wheat there grown was exported to pay 
when the price of wheat in Europe was lower than it had ever been before. The 
greater part of the best pastoral and agricultural land in the Argentine Republic 
lies within a radius of 300 miles from Buenos Ayres, and for wheat at present the 
average distance from station to seaboard is 100 miles, as compared with 1,000 miles 
in the United States. 

Twenty years ago all the sugar consumed in the Argentine Republic was imported. 
In 1892, 50,000 tons were produced, and in 1895, 120,000 tons. The excess of production 
over consumption for 1895 is estimated at 30,000 tons. The maize exported during 
1895 was 731,000 tons, the average export for the previous three years being 271,300 
tons. The production of linseed rose from 31,000 tons in 1890 to 104,000 in 1894, and 
to 250,740 tons during eleven months of 1895 to November 30. Oats grow well on 
the Atlantic coast, and will probably be exported this year. The vineyards of the 
country have been greatly extended, and wine is now made in very large quantities. 

I have referred to the increase of agricultural products first, not because these 
products are the most important, but because the agricultural are the most recently 
started industries, and the industries that have on the whole advanced most rapidly ; 
and my object is to show the progress, not the position, of the country. 

The numbers of live cattle exported monthly to Brazil and Europe have greatly 
increased, and this trade promises to become so very important, that the herds of the 
River Plate countries have taken a new and much higher value. The number of live 
cattle shipped in 1892 was 10,540; the number shipped in 1895 was 120,000. The 
export of sheep, too, has yearly become greater. The number of live sheep exported 
in 1892 was 16,379; in 1895 it was 454,000. The export of frozen sheep was in 1883 
17,165 carcasses; in 1894 it was 1,500,000, and for eleven months of 1895 it was 
1,742,000. For the year it will probably be 2,000,000. Excellent butter is made in 
the country, and this promises to become a very important export. There seem to 
be no reliable statistics of shipments (native newspapers to hand complain of this); 
but we know, that two steamers alone, in the early part of December, brought to 
Europe 117 tons of butter, and we hear of large contracts for shipments being entered 
into. A country favored with a fine climate, in which a good cow, costing £3, can be 
kept for 15 shillings per annum, should be able to compete in the production of but- 
ler with any country in the world. When you remember that in the Argentine 
Republic there are millions of acres of the richest pastoral land and hundreds of 
thousands of cows, you can see what an important export butter may become. 

Mr. Edward L. Baker, who has been a consul of the United States 
in the Argentine Republic for many years, and is one of the ablest men 
in our consular service, in a recent report to the Secretary of State, 
gave some cogent reasons why the export trade of the United States is 
handicapped and why the bulk of it goes to Europe. The facts and 



RECIPROCITY STATEMENTS. 87 

arguments he presents can not be too widely published, and are worthy 
of insertion here : 

WHY THE BULK OF ARGENTINE REPUBLIC TRADE IS WITH EUROPE. 

As we have seen, the share of the United States in all these figures of importation 
and exportation has been and continues to he a very small one. The bulk of the 
Argentine import trade has been from the beginning and continues to be with Great 
Britain, with France, Germany, and Belgium, following after in the order named. 
The causes which have given those countries their supremacy are no mystery, but are 
patent to all careful observers; and they do not to any great extent depend upon 
any peculiarities of the trade which they have learned, nor do they result from any 
close study of the supposed wants and tastes of the people. Of course waDts, tastes, 
and peculiarities are consulted where they exist, but these are not the prime reasons 
which have secured to them in great part the control of the Argentine trade. 

Great Britain. — In the case of Great Britain, which quite monopolizes the imports, 
we have to go back for the causes to the beginning of the Argentine Republic. The 
people of that Kingdom, immediately after the Argentine vs ar of independence, seek- 
ing new homes for themselves and new outlets for their manufactures — at a time, 
indeed, when we may be said to have had no manufactures — came in trading colonies 
to the River Plate and became part and parcel of the country. The basis of the first 
English settlements here were the armies of Generals Whitlock and Beresford, which 
in 1807, after the surrender of one and the defeat of the other, were so scattered 
through the interior that but few of the rank and file ever got home again, but 
married and settled in the country, some engaging in sheep farming and some in 
trade. As the treaty of commerce with Great Britain conceded to her subjects 
almost unrestricted trading rights and privileges, with full protection for their lives, 
their stock, and their merchandise, with exemption from forced loans and exactions, 
others from that nation immediately followed, some of them men of wealth and 
position. 

These newcomers purchased landed properties, and many of them became sheep 
farmers, the Scotch and the Irish being the pioneers in that industry, which has now 
grown to such vast proportions; or they engaged in the foreign trade, and thus at 
once fixed and expanded the commerce between Great Britain and the Argentine 
Republic, some of the English houses now doing business in the River Plate having 
been founded upward of a century ago. They saw their opportunities, and they 
have made such good use of them that that Kingdom now has the control of the 
Argentine trade. The English, Scotch, and Irish settlers, and their descendants in 
this part of South America are numbered by tens of thousands. Over and above 
their mere commerce, with its gigantic proportions, there is now invested all over 
the Argentine Republic an immense amount of British capital in estancia and other 
lands, in cattle and sheep farming, in manufactures, in mining, in river steamers, in 
railways, in tramways, in public works, in gas companies, in banking institutions, 
etc. Thus, with their numerous mercantile establishments in this city and Rosario 
and the many lines of steamships between the ports of Great Britain and the River 
Plate, nothing is lacking to assist, dispatch, and indefinitely augment the commerce 
which they now so completely control, or strengthen the foothold which they already 
possess in the country. More than this, the British people have other large amounts 
invested in the securities of the nation; and their commercial, financial, and business 
relations are not only an established fact, but they could hardly be more intimate or 
more complete. They are the bankers, brokers, and creditors of the Argentine 
Republic. 

France. — Though the trade relations of France with the Argentine Republic are 
not so complete, they are quite as significant as those of Great Britain. At the same 
time the social intercourse of the two nations is even more friendly and close. The 
Argentines, when they travel, go to Paris, and the French, in return, furnish this 
country with its fashions — of course, supplying whatever enters into the fashion 
account. Thus, there is now a French colony here in Buenos Ayres of over 20,000 
people, all engaged in trade or business of some kind, and French trade greatly 
profits by the fact that a large proportion of the dry-goods merchants of Buenos 
Ayres are French or have connection with Paris houses; that the modistes here are 
principally French, that the shoe shops are French, that the furnishing shops are 
French, that the tailors are French, that the hatters are French, since orders in all 
these trades and lines of goods are in great part sent directly to Paris. In addition 
to this, the Argentines drink French wines and brandies and eat French preparations 
of food, preserves, confectionery, etc., while the ten thousand different articles of 
fancy, vertu, and art, which the French know so well how to make attractive and 
which so pander to wealth and fashion, have no difficulty in finding a sale here and 
adding to the imports. But the French trade within the last few years has taken a 
wider range, and now French experts make annual visits to the River Plate to buy 



88 RECIPROCITY STATEMENTS. 

up the wool clip, the quantities of that staple which go forward to Dunkirk for a 
market increasing every year in amount. In the financial line also the French have 
made some ventures, and it is understood that a good many millions of Argentine 
bonds and other securities are now held in Paris. Thus, with a French-Argentine 
bank in this city to facilitate exchanges and two or three lines of steamships plying 
between the ports of France and the River Plate, it is not surprising that the trade 
relations of the two countries are reciprocally satisfactory. 

Germany and Belgium. — Both of these countries have a well-defined trade with the 
Argentine Republic, not commanding in the amount of imports, but reliable, and 
with a tendency to further development. It is only within the last few years that 
the Germans commenced operations here on any considerable scale ; but they are the 
most persevering and painstaking merchants in the world ; and that they have come 
here "to stay" is evident from the manner of their business and the methods they 
have adopted to push it. They have in the country run their distinctive houses with 
full supplies of trained business men, all of whom speak Spanish and English as 
fluently as their native tongue. They have established, also, at least two lines of 
steamships with the River Plate, and have an Argentine-German bank in successful 
operation. From very small figures the German import trade is beginning to assume 
considerable proportions. The fact that the Germans engaged in business here now 
number, with their families, 15,000 or 20,000 people, who, in their social relations, 
thoroughly affiliate with the Argentines, confirms the commercial progress they are 
making. As they fully understand the trade and take a national pride in pushing 
German goods to the exclusion, where it is possible, of those of other countries, the 
auguries are all in their favor. What strengthens their position is the increasing 
export business which they are doing, Argentine wools now finding quite a demand 
in German markets. Belgium was formerly the great entrepot of the wools of the 
River Plate, the auction sales at Antwerp distributing the products to the different 
countries of the Continent. This trade is now divided with Dunkirk, but the old- 
time trade relations of the Argentine Republic with Belgium are still to be seen in 
the long lines of manufactured goods which continue to be imported from that coun- 
try. Though the Belgium colony in Buenos Ayres is not so large as the German, it 
embraces some of the strongest and best known commercial houses, which have direct 
business connections with manufacturing establishments at home. 

HOW THE UNITED STATES ARE HANDICAPPED. 

Under these circumstances, is it surprising that the United States have such a lim- 
ited commerce with the Argentine Republic? With the facilities of trade which the 
nations of Europe generally offer to this country, with the close intercommunication 
by steamships which exists, with the banking advantages which they enjoy, with 
their established business houses here, with the interchange of liberal credits which 
are so essential to trade, how is it possible for us, who are possessed of none of these 
facilities, to compete witli them for the Argentine trade, even though our goods be 
really of better quality and though they would at the same prices be preferred by the 
people of the River Plate? The wonder is, not that the United States finds difficulty 
in extending its trade relations with the River Plate, but that it can find any foothold. 
h.ere at all. With the field already occupied by nations which not only have a large 
reciprocal trade, but are connected with this country by a thousand different busi- 
ness affinities and social ties, we have little reason, with our almost total lack of 
modern trade methods, to expect a very large share of Argentine commerce. Our 
commerce with this country at present consists not of a regular, certain, diversified 
trade, but, in great part, of such raw materials of prime necessity as can not be 
obtained elsewhere. If we eliminate from our imports to the Argentine Republic the 
cargoes of timber, of kerosene, and of agricultural implements and machinery, it will 
be seen that what remains is a very small item, so far as dollars and cents are con- 
cerned. The truth is that, socially and commercially, we are strangers to the Argen- 
tine people. There are not a hundred citizens of the United States in the entire 
country, and of these not twenty-five are engaged in American commercial business, 
and only one or two in the importation of American manufactured goods. It can 
scarcely be said that, in the ordinary lines of manufactured merchandise, there are 
any American houses on the River Plat e. The business of importing goods from the 
United States is all in the hands of foreign houses — English, French, and German. 
It may be safely inferred from this fact that no orders, in the ordinary course of 
trade, are ever sent to the United States if the same goods can be obtained from their 
European correspondents, and, other things being equal, they prefer to buy from the 
latter, if they can, for the reason that it is more convenient and more expeditious. 

ARGENTINE METHODS WITH THE UNITED STATES. 

The method usually employed by Argentine houses in doing business with the 
United States is very simple and very satisfactory to them. They have their estab- 
lished correspondence in New York ; and all their orders for American merchandise 



RECIPROCITY STATEMENTS. 89 

are sent directly to them, who make the purchases and ship the goods. In each case 
the Buenos Ayres house states exactly what it wants, and if there is required any 
special modifications in style, finish, or get-up, these are left to their correspondents 
to attend to. The American manufacturers of agricultural machinery generally 
employ established houses of this country as their agents, and ship to them directly 
or through their New York correspondents, as may be arranged or mutually agreed 
upon. In some few cases representatives of American houses or manufacturers are 
sent down here, not to sell by sample, but to offer and arrange terms with well-estab-' 
lished houses for particular lines of goods or specialties ; and such goods are sent out 
to them as agents, in stock for sale and disposition. This manner of making trade, 
though very much like "playing second fiddle,' 7 in some instances has proved quite 
satisfactory. It fails, however, to place American manufactures upon the same basis \ 
as those especially ordered and purchased by them. Selling by sample or orders for 
goods to arrive is no longer very greatly in vogue, as it has a tendency to lead to 
complications, misunderstandings, dissatisfaction, and in some cases to downright 
loss. In the matter of lumber and kerosene, there are several American merchants 
here who make a specialty of such shipments, though the bulk of the trade is done 
through foreign houses. 

HOW AMERICAN TRADE MAY BE INCREASED. 

Even this, however, does not go to the "bottom" of the question of an increase of 
our trade relations with the Argentine Republic. It is not by these means alone, if 
at all, that we can expect to divide the Argentine trade more equally with the com- 
mercial nations of Europe. They already have too much the advantage of us for us 
to gain much by such expedients. During all the years since the Argentine Repub- 
lic became a nation they have been, consciously or unconsciously, preparing to 
monopolize its trade. They have established and have now in operation all the 
facilities and appliances for doing so. 

(1) They have their numberless lines of steamships running to and from the River 
Plate. There is scarcely a day in the week that a steamer from some European port does 
not arrive at Buenos Ayres, and thus the receipt of merchandise can be counted on here 
to a day. The stimulus and impetus which these constantly arriving and departing 
steamships give to trade is incalculable. In this age of the world sailing vessels are 
no longer employed except for the heaviest freights, such as coal, lumber, salt, crude 
sugar, wines, kerosene, or heavy machinery. Everything in the hardware, the gro- 
cery, or the dry-goods Hues intended for the Buenos Ayres market now comes by 
steamers, and the merchant who gives his order by cable to his agent in a European 
port knows that it will be filled and delivered here within twenty-five or thirty days. 

(2) The advantage which steam communication gives to European manufacturers 
and wholesale houses in their trade with the River Plate is supplemented and enhanced 
by the fact that the mercantile firms in the importing business here are, as a general 
thing, branches of established houses or manufacturing companies in the business 
centers of the Old World, or they are their sole and immediate agents, and by a long 
course of trade now have their confidence and their business. They are thus enabled 
to obtain their goods at times and in quantities to suit their requirements, accom- 
panied by the most favorable terms and credits. 

(3) Another and most decided advantage which Europe enjoys is its extended 
banking and exchange facilities with the River Plate. The value of these in the 
general conduct of trade can hardly be overestimated. The business of exchange, 
collecting, remitting, and furnishing the needs of trade is a most important element 
in the details of reciprocal commerce, and in its way contributes quite as much to 
its success as rapid and reliable transportation. Here in Buenos Ayres Great Britain 
has five banks, France has one, Italy has two, Spain has one, Germany has one, Brazil 
has one — all doing a general .business in discounting bills, making loans, attending to 
collections, receiving deposits, issuing bills of exchange, giving letters of credit, 
transferring funds, receiving goods on bills of lading, etc. 

By these sure methods have the leading nations of Europe laid the foundations of 
a fixed and permanent trade with the Argentine Republic. They are prepared to 
handle its foreign commerce with certainty and dispatch, and at the same time with 
a profit to all through whose hands it passes. This has been considered by them as a 
matter of more importance than mere panegyrics on the excellence or superiority of 
what they may have to sell ; for they argued, and argued correctly, that if the people 
of another nation have a demand for any particular article of merchandise or manu- 
facture they will buy it — even though it may be perhaps inferior — where they can 
procure it with the greatest facility and receive it in the quickest time. 

It would be well if in these respects the United States could follow the example 
thus set them. Until we do, our commercial relations with the River Plate must 
remain, in a great measure, as they are. In all the years that we have been striving 
for the trade of the River Plate we have made but little provision for obtaining it. 



90 



RECIPROCITY STATEMENTS. 



Until we do, we will merely continue to send down here only such articles as can 
not be procured elsewhere. We can not expect to come into a large business with 
this country by finding- out the invoice prices of goods shipped from Europe and 
thinking to duplicate them. We should have close and frequent intercommunica- 
tion with the Argentine Republic by means of regular lines of steamers; we should 
have distinctive American business houses in Buenos Ayres ; we should have more 
satisfactory banking facilities; and, with all, we should give the Argentine Repub- 
lic a less restricted market for its products in return for our own. 

In addition to the means Mr. Raker has suggested, which for the 
most part must be furnished by private enterprise, it was and inay 
stir be possible for our Government to negotiate a reciprocity treaty 
with the Argentine Eepublic that will be of very great advantage to 
our export trade in case the duty is restored upon wool that comes into 
this market from countries that will not offer reciprocal concessions in 
favor of the products of the United States. 



SHIPPING AT BUENOS AYRES. 



The following statement shows the number of steamers arriving at 
the port of Buenos Ayres during the year 1895, their nationality, and 



tonnage 



Nationality. 



British 

Italian 

German ... 

French 

^Norwegian 
Austrian.. 



Steam- 


Tons 


ers. 


registered. 


371 


645, 102 


62 


135, 421 


45 


69, 754 


19 


51, 200 


7 


7,788 


5 


6,916 



Nationality. 



Belgian 

Portuguese 
Spanish — 
Danish 

Total 



Steam- Tons 

ers. registered. 



3 


7,311 


1 


2.092 


1 


1,450 


1 


9G5 



515 



927, 999 



EXPORTS FROM THE ARGENTINE REPUBLIC. 

The following statement gives the exports from the Argentine Eepublic 
by principal articles for the last four years : 



Articles. 


1892. 


1893. 


1894. 


1895. 


Wheat 


tons.. 


470, 110 


1, 008, 137 


1, 608, 249 


1, 046, 000 


Maize 


do.... 


445, 935 


84. 513 


54. 876 


804, 509 


Linseed 


do.... 


42, 987 


72, 199 


104, 434 


252, 249 


Wool 


do.... 


154, 635 


123, 230 


161, 907 


123, 237 


Elour 


do.... 


18, 849 


37, 921 


40, 758 


55, 865 


Hides 


number.. 


4, 041, 242 


4, 398, 755 


5, 649, 980 


3, 693, 366 


Hay 


tons.. 


39, 309 


53, 523 


47, 618 


a 455, 171 


W ethers, frozen 


do.... 


25, 436 


25, 041 


36, 486 


b 1, 968, 245 


Steers, live 


num ber . . 


125, 645 


201, 645 


220, 490 


125, 839 


Sheep, live 


do.... 


40, 100 


71, 167 


122, 218 


477, 121 



a Bales. 



b Number. 



In the above table the statistics given for 1895 represent the exports 
from the Argentine Eepublic to Europe, United States, and the principal 
Brazilian ports. The other statistics represent exports to all ports. 

William E. Curtis. 



RECIPROCITY STATEMENTS. 91 



STATEMENT FROM THE ARGENTINE LEGATION. 

Department of State, 

Washington, April 6, 1896. 
Sir: I have the honor to inclose for the information of the Subcom- 
mittee on Beciprocity of the Committee on Ways and Means a letter 
which Mr. Vicente J. Dominguez, charge* d'affaires ad interim of the 
Argentine Republic, has personally left at the Department this morn-i 
frig with a request that it be so transmitted. It is dated the 3d instant, 
and relates to certain features of the Argentine tariff concerning 
which Mr. Curtis, to whom it is addressed, has heretofore written Mr. 
Dominguez. 

I have the honor to be, sir, your obedient servant, 

Richard Olney. 
Hon. Albert J. Hopkins, 

Chairman Subcommittee of Committee on Ways and Means, 

Souse of Representatives. 



Legacion Argentina, 

Washington, April 3, 1896. 

My Dear Sir: I am in receipt of your esteemed communication of 
yesterday's date, returning the tariff laws of the Argentine Republic 
for 1894 and 1895, which I had the pleasure to send you a few days ago 
in response to your request for a list of the American products upon 
which duties were reduced by the Argentine Republic after the removal 
of the duty on wool in this country. 

In your letter you are good enough to say: "I have carefully com- 
pared them, and find that the reductions in favor of the United States 
were very few, while, on the contrary, the duty on lumber was increased 
from 5 to 15 per cent ad valorem." 

I ask you leave to correct this statement. By the tariff law of 1894 
pitch, or yellow pine (pino de tea), which is imported into the Argen- 
tine Republic from this country in larger quantities than any other 
lumber, paid 25 per cent ad valorem, as it came under the " general 
clause," not being specially mentioned. 

Mr. Buchanan, the minister of the United States in Buenos Ayres, 
requested that such duty should be reduced to 15 per cent, advancing 
to this figure the duty on other lumber — white and spruce pine — which 
goes chiefly from Canada and paid 5 per cent. 

It was done so to favor the American product, and in the law for this 
year it has been maintained. 

Mr. Buchanan, in his. note to the Secretary of State dated October 5, 
1894, says: 

The position I have taken and endeavored in everyway to illustrate and make 
clear to the Government is, that this is virtual discrimination, inasmuch as all the 
pitch pine comes from the United States, while the greater part of the white pine, 
although passing through the United States in bond, comes originally from Canada. 
I urged that not only was the course now being adopted unfair to the United States, 
but that it put an excessive burden on an article which under normal conditions 
would have a much greater consumption ; that the loss in revenue by properly and 
fairly adjusting the question would, I believed, be made up by an increased use of 
• the wood, and most important, as I thought, lowering the duty would materially 
lessen the cost and thus benefit the people of the country. 

The finance minister had present at the second conference a member of the tariff 
commission, a member of a large importing house, and the secretary of the commis- 
sion, the purpose being seemingly to sustain the position taken by the commission. 



92 



RECIPROCITY STATEMENTS. 



After my refusal to acquiesce in several propositions suggested by the minister of 
hacienda, an agreement was reached on the general line I had maintained, that the 
values should be revised in accordance with the facts and that the same duty apply 
to each of the three kinds of pine. 

The present duty and value per square meter on each of the three kinds of pine 
lumber imported here is : 



Kind of lumber. 



Value per 
square 



White pine 

Spruce pine 

Pitch (or yellow) pine 




Under the above, the duties paid on the total quantity of each of the three kinds 
of pine imported from the United States and Canada during the tirst six months of 
this year was — 

"White pine $33,076.14 

Spruce pine 20, 116. 30 

Pitch pine 200,577.75 

Total 253,770.19 

The recommendation of the tariff commission was as follows: 



White pine . 
Spruce pine. 
Pitch pine . . 




Under their plan the lumber above mentioned would have paid: 

White pine $66,152.28 

Spruce pine 33,527.10 

Pitch pine 160,462.20 



Total 260,141.58 

Or $6,371.39 more than at present, which would be a " reform" in the wrong 
direction. 

As a result of the conference the minister has agreed to make the pine schedule 
read as follows : 




Value per 
square 



White pine . 
Spruce pine. 
Pitch pine . . 



Gents. 



Under this scheme the lumber referred to in the last two illustrations would pay: 

White pine $77,177.67 

Spruce pine 33,527.10 

Pitch pine '. 72,207.79 

Total 182,912.56 



Or $70,857.43 less than under the present law, and $77,228.82 less than under the 
commission's scheme. 



RECIPROCITY STATEMENTS. 93 

To make clear the direct benefit such a change would he to our yellow pine, the 
following table, showing the amount which would have been collected under each 
plan on the yellow pine shipped to this country from the United States during the 
first six months of the year, is given : 

Under present law $200,577.55 

Under commission's scheme 160, 462. 20 

Under conference scheme 72, 207. 99 

It will thus be seen that if the Congress adopts the minister's recommendation 
there will be taken off our yellow pine about $256,000 in duty in one year, which 
should enable us to get a slight advance on the lumber and secure a greatly increased 
demand. 

In regard to what you say about machines, allow me to state that 
mowers, binders, or reapers, and steam thrashers are on the free list, 
while the duty on machines and motors of all kinds for agricultural pur- 
poses has not been increased from 5 to 10 per cent, but remains at 5 
per cent ad valorem. 

The United States has taken full advantage of the free market 
offered by the Argentine Republic to the manufacturers of mowers and 
reapers in this country, and, as it appears in the official publication 
Foreign Commerce and Navigation of the United States for the year 
ending June 30, 1895 (p. 233), the exports of such agricultural imple- 
ments have been by far larger than to any other country, viz : 

Argentine Republic $817, 445 

Russia: 

Baltic and White Seas $101,783 

Black Sea 527,652 

629,435 

United Kingdom 447,114 

France 424,312 

Germany 375,348 

All other countries are under $150,000, and the total exports 
amounted to $3,659,735; so that the Argentine Republic takes from 
the manufacturers in this country of mowers and reapers over 22 per 
cent of their exports to all foreign lands. 

You say further: "Railway supplies were taken from the free list 
and subjected to a duty of 10 per cent." This is true as far as bars or 
rails are concerned. Locomotives are on the free list. However, the 
duty on rails does not affect in any way the factories of this country, 
because, according to the statistics of the United States, such an article 
was not exported to the Argentine Republic before or after the passage 
of the present tariff law. I do not find that in 1894 or 1895 a single 
bar or rail was sent from here to the Argentine Republic. But in the 
tariff for 1896 rails, sleepers, etc., are again free. 

Although American merchants have as yet taken no pains to increase 
the consumption of manufactured goods of this country in the Argen- 
tine market, it is already for them the largest in South America, with 
the exception of Brazil, as shown in the official statistics for last year. 
We have, I believe, a great field for American fabrics, and two things 
only are necessary to develop considerably the commercial relations 
between our countries — that the American manufacturers should make 
their wares known in the Argentine Republic, adapting themselves to 
the uses of our market as to credits, etc., and that the tariff law of this 
country in regard to our wool should not be modified. 

Allow me to refer here to what Mr. Baker, the United States con- 
sul in Buenos Ayres, said in his report for 1892: 

The Argentine Republic is a country which for the most part produces only raw 
materials, the hulk of its exports consisting of wools, hides, skins, etc. If the 



94 RECIPROCITY STATEMENTS. 

United States has no market, or an uncertain market, for such articles, or its fiscal 
laws are such that it will not pay to ship them to our ports, it is out of the question 
that our country can have a very large or a very reliable trade with the River Plate. 
During all the twenty years that I have been at this port I have persistently sought 
to impress upon our Government the importance of this fact, and have in my reports 
time and again suggested that modifications of such restrictions, thus stimulating 
a freer exchange of products, was "the key which would open a large reciprocal 
trade between the United States and the Argentine Republic." I can only reiterate 
what I have heretofore so often said, and I do so at the request of American mer- 
chants dealing with the River Plate, in the hope, which they express, that something 
majr be done to ease up the situation and give them the chance of a market for 
Argentine wools in the United States. There is no doubt that it would have a 
marked effect upon our commerce with this country, not merely in respect to the 
amount of shipments from here, but, what is more important to us, in the increase 
of the imports hither of our manufactured goods. It is well said that " business 
begets business," and the opening of our markets to the wools of this country would 
have a direct effect not only in strengthening our commercial relations with the 
people of the Argentine Republic, but, what is always desirable, in promoting their 
good will and bringing them socially and politically nearer to us. 

Having in view the facts I have stated, and considering that the 
Argentine Republic has on the "free list," besides other articles, mow- 
ers, reapers, thrashers, raw petroleum, coal, coke, locomotives, rails, 
sleepers; has reduced the duty on lumber (yellow pine and oak), on 
canned goods, on petroleum, on cotton goods (this last from 60 to 20 per 
cent), and levies a moderate duty on all other American products imported 
there (5 per cent ad valorem on plows, machines, and motors of * all 
kinds for agricultural purposes, sewing machines, rosin, wire for reap- 
ers, fences, etc.), I have no doubt that the Committee on Ways and 
Means will see that our tariff, from which my Government derives its 
principal revenue, deals fairly and liberally with the products of the 
United States. 

Trusting that you will use your influence toward maintaining and 
developing the mutual commerce of our countries, I have the honor to be, 
yours, very respectfully, 

Vicente J. Domingkjez. 

Hon. William E. Curtis. 



STATEMENT OF MR. GEORGE W. FISHBACK, SECRETARY UNITED 
STATES LEGATION, BUENOS AYRES. 

The Chairman. Will you please state your official position and the 
length of time you have lived in that country, and your opportunity for 
obtaining information that we seek to develop in your testimony, and 
then go on with your statement generally? 

Mr. Fishbagk. I have been secretary of legation at Buenos Ayres 
since 1890, and have been there uninterruptedly up to the present time, 
and am here on leave of absence. 

The Chairman. Please state what changes, if any, have taken place 
in the tariff regulations of that country in respect to articles imported 
from the United States since 1890. 

Mr. Fishback. That I will cover fully in the summary taken from 
the tariff, whicli I have in my possession and will send in to yon, giving 
you all the figures of changes which have been made since 1890 up to 
the present time, and showing how the rates are on American manufac- 
tured goods under the tariff which is in force to-day. There are three 
different sets of changes ? which I have in my possession and which I 
will submit to you. 



RECIPROCITY STATEMENTS. 95 



OUR TRADE WITH THE ARGENTINE REPUBLIC. 

The Chairman. Since you Lave been there what special changes have 
taken place in the trade between the Argentine Republic and the. 
United States? 

Mr. Fishback. As to changes in the trade? 

The Chairman. In the general trend of trade. 

Mr. Fishback. Nothing except a gradual increase, which has been 
in spite of the considerable duty on our principal goods, with the excep- 
tion of agricultural implements. 

The Chairman. In what line of articles has the increase of trade 
been? 

Mr. Fishback. A steady increase always in the agricultural imple- 
ments, and in kerosene and lubricating oils, and within the last year 
there has been a marked increase in general manufactured goods ; in 
hardware lines, for instance. 

The Chairman. Caused by American drummers? 

Mr. Fishback. Caused by American drummers. 

The Chairman. Coming into the country with samples? 

Mr. Fishback. Yes sir; and showing that these American goods can 
be sold in Argentina as cheaply as German and English goods, and of 
a better quality. 

The Chairman. Are the English and German manufacturers our chief 
competitors in that country ? 

Mr. Fishback. Yes, sir; and up to the time the American drummers 
brought full lines of samples and general line of manufactured goods to 
Argentina the merchants did not know that the States could sell as good 
material and at as cheap rates. The principal difficulty in the way of 
the United States trade has been the lack of satisfactory credits, Ameri- 
can houses always insisting upon cash in New York, whereas German 
and English houses are always willing to give six to nine months' credit, 
and that has secured them the possession of the field, and the reason 
why 

The Chairman. Have the German and English manufacturers better 
banking facilities in that country than the Americans have? 

Mr. Fishback. Yes, sir; in fact, we have no banking facilities. 

ABSENCE OF BANKING FACILITIES. 

The Chairman. Briefly state what facilities the German and English 
manufacturers have there? 

Mr. Fishback. Both the German and English have large banks doing 
an enormous business and giving long credits, and offering every facility 
for rapid and favorable exchange, and naturally favoring the trade to 
their respective countries. An American house has to draw an exchange 
through London, and in the legation we have had occasion repeatedly 
to see the discrimination against the American trade on the part of the 
English and German banks. I might state to you a case of an American 
who brought a letter of credit for a given sum of money issued by their 
Kew York branch on a Buenos Ayres English bank, and when he pre- 
sented that and wished to draw some money on it they told him that if he 
would leave it for collection they would honor his checks. He declined 
to do so, and he told them he would come back on the following day and 
get their final reply; that if they declined to honor a letter of credit 



96 RECIPROCITY STATEMENTS. 

drawn by their house in New York he would have to take other steps; 
but they reconsidered it and stated that any amount he wanted he could 
have. 

The Chairman. How recently has the practice of sending out drum- 
mers from the United States been extended to Argentina? 

Mr. Fishback. Only within the last year. Up to that time the trade 
was done by certain Americans who had their representatives in 
Buenos Ayres and called themselves " manufacturers' agents," who 
would receive small lines of goods and sell them on commission. 
Naturally they could not make much money and did not have capital 
enough to swing the business and allow for difference in credits, as they 
had to pay for their goods in New York at least on thirty days' credit, 
and would have to wait from four to five months for collection in Argen- 
tina. The result was, their life was only of short duration. The success- 
ful English and German houses are houses with big capital, and with 
their banking facilities they buy their goods on six months' credit, and 
at times wait two or three years, according to the crops, for their col- 
lections throughout the country. 

The Chairman. What do you find the disposition of the people of 
that country in respect to our importations into that country as com- 
pared with German and English importations'? 

Mr. Fishback. The disposition is rather of indifference than any- 
thing else, and they base it upon the statement that our exporters have 
never shown any particular desire to cultivate the trade in Argentina, 
and repeatedly point to the fact that the United States has no bank- 
ing facilities and no steamship connections. 

THE TRADE IN WOOL. 

The Chairman. Now, we have had within a few years legislation of 
this country that has greatly benefited that country, especially on their 
wool. We have taken off the tariff on wool and allowed free wool in 
this country, which has been a direct benefit to the people there. Have 
they shown a disposition to reciprocate on that? 

Mr. Fishback. When the tariff of 1895 was under consideration in the 
Argentine House the duty on wool in the United States had then been 
taken off", and they stated that we were not in a position to ask recip- 
rocal favors as a result of free wool, because action had already taken 
place, and they entertain, as they put it, no illusions as to the special 
benefits which the States intended to give Argentina. There was a lack 
of disposition in the House to make any reduction on American goods — 
that is, in the Argentine Congress. Now, the President of the Eepub- 
lic had promised the minister that he would recommend certain reduc- 
tions 

The Chairman. That is, Minister Buchanan? 

Mr. Fishback. Promised the United States minister, Mr. Buchanan, 
that he would recommend certain reductions, and in the message he 
sent to the Argentine Congress he urged that certain reductions be 
made upon American goods, which were done, to a certain extent, the 
details of which I will furnish you. 

The Chairman. What was the general disposition there of the sheep 
growers of the liepublic in regard to free wool? 

Mr. Fishback. The general idea was that it would increase the sale 
of wool aiuUwould improve the prices in the Argentine market. They 
argued that the American buyers— the Yankee buyers, as they call 
them — would immediately come into the market and would improve the 



RECIPROCITY STATEMENTS. 97 

sales in quantity and in price. The better informed prophesied the 
influence of that action had already been discounted, which proved to 
be the fact. Free wool did not exercise any considerable influence in 
the Buenos Ay res wool market. 

The Chairman. What would be the effect if the duty on wool was 
restored ? 

Mr. Fishback. There would be no material change in the Argentine 
duties on American manufactured goods as they stand to-day, because 
they have given us a very full extent of favors on the goods which are » 
essential to them, such as agricultural implements, machinery, and 
kerosene. 

The Chairman. How about lumber? 

Mr. Fishback. Lumber is just indispensable to them. They have to 
get it from the United States and they put the full value in tariff rates 
that they can. They have a peculiar system of valuation also. They 
do not take the value of the lumber at the port of shipment, but take 
the current market price as the valuation, and then it imposes a duty 
upon that. 

The Chairman. The current market price in the Argentine market? 

Mr. Fishback. Yes, sir; so that the duty is a duty imposed not only 
on the value of the goods, but upon the price, profits, and everything. 

The Chairman. Upon freights, profits, and insurance? 

Mr Fishback. Everything. They send an agent from the finance 
minister's bureau to the principal importing houses and get from them 
the current value — we will say of pitch pine. They consider that then 
the valuation, the "afforo" as they call it, and put a duty on that. 
That is true all the way through that tariff. 

agricultural implements. 

The Chairman. Now, how is it with respect to agricultural imple- 
ments that we export to that country? Is th d same duty imposed there, 
the market value of those goods in the Argentine Eepublic? 

Mr. Fishback. Yes, sir; and those goods that are on the free list 
coming from the United States have to pay the regular duty according 
to the tariff when they are taken from the custom-house and the 
importer then has a reclaim for the amount of duty that he has paid, 
so each importing house has to keep an account with the custom-house 
and has his debit and credit there. 

The Chairman. Do we ship boots and shoes to that country? 

Mr. Fishback. Not to any considerable extent. 

The Chairman. Then our trade at present is limited to what class 
of goods? 

Mr. Fishback. The principal trade is agricultural machinery and 
implements, kerosene, lubricating oils, lumber, and general manufac- 
tured goods. 

The Chairman. Do we find a market in that country for any of our 
cotton we manufacture? 

Mr. Fishback. No; for the reason that the German and English 
houses send them in rolled and packed as they want them and as they 
can sell them, and not as the requirements are in the American market. 
English merchants, friends of mine, have told me repeatedly if the 
United States exporters would conform to the requirements of the 
Argentine market in packing and shipping their goods, in regard to 
length and other ways, that we would become a large factor in the 
market. 

H. Rep. 2263 7 



98 RECIPROCITY STATEMENTS. 

The Chairman. How about prices ? 

Mr. Fishback. Our prices cau compete successfully with them, both 
English and German. 

The Chairman. And the quality is preferred? 

Mr. Fishback. The quality of the States goods would be preferred. 
In other words, their general impression is that the States have been 
indifferent to the Argentinian market and made no special effort to get 
into it; which is true. 

The Chairman. Their great export, as 1 understand you, is wool ! 

Mr. Fishback. That is not their great export; their great exports 
are cereals. 

The Chairman. Describe the extent of their exports of cereals. 

GRAIN EXPORTS FROM ARGENTINA. 

Mr. Fishback. It is within the last five years that Argentina has 
become a factor in the grain supply of the world. Last year the out- 
put was considered to be at the time of the last shipments about a 
million and a half tons of wheat. This year, so far, the acreage is about 
15 per cent less, but the system of information which they get from 
the interior of the country is so imperfect as yet they have not realized 
what a big wheat-growing country Argentina is, and the shippers and 
the elevator people in the city of Buenos Ayres are never able to tell 
exactly what amount of wheat they will have on hand at any given 
time. A system has recently been adopted of getting communication 
from what is called the wheat belt of Argentina, which consists of 
three provinces, namely, Entre Rios, Santa Fe, and Buenos Ayres. 

The Chairman. You do not give the export in bushels, but you give 
it in tons ? 

Mr. Fishback. Yes, sir; in tons. The statement of the amount of 
wheat shipped during the year 1895, in bushels, its price, its freight 
rates, I can give to you when I submit to you the other information. 

The Chairman. Can you give the statistics for the last five years 
annually? 

Mr. Fishback. No; it is only for the last year that they began to 
organize a statistical bureau in regard to cereals. 

The Chairman. Where does that country come in competition with 
America in regard to wheat, in the English and other European mar- 
kets? 

Mr. Fishback. In the European markets. 

The Chairman. At what rate per bushel can they produce their 
wheat there ? 

Mr. Fishback. That I would have to figure for you and can give you. 

Mr. Tawney. Do you know the cost of producing wheat there as 
compared with the cost of producing wheat here? 

Mr. Fishback. Yes, sir; I can give the figures. I have them among 
my other lepers, and can give an exact estimate made of it. I can 
further give you an estimate of the exact cost of the production of 
wheat in the Argentine Republic. 

The Chairman. You will file that with us? 

Mr. Fishback. I have brought all of that with me to enable me to 
answer these questions, which I thought you might pat. I have them 
among my papers. 

The Chairman. Before we leave the wheat trade I want to learn 
this fact. Is that industry on the increase in that country; and if so, 
about what percentage? 

Mr. Fishback. The percentage I would have to figure out carefully 
for you, but the increase is undoubted. 



RECIPROCITY STATEMENTS. 99 

The Chairman. Are you familiar enough with the country to give us 
the limit of increase? 

Mr. Fishback. Yes, sir; I can. 

The Chairman. The possible limit of increase? 

Mr. Fishback. I can also furnish you with a rough map of the wheat 
belt. 

The Chairman. I think it would be well to have that statement. 

Mr. Tawney. Yes. 

TRANSPORTATION FACILITIES. 

The Chairman. What facilities have they for transporting this wheat 
to foreign markets, and how are their farmers situated in respect to 
shipping ports. 

Mr. Fishback. The system of transportation as yet is very crude 
and undeveloped. They send the grain in sacks, the exact weight of 
which I can give you, along the railways to the four ports of shipment — 
do you wish the ports? 

The Chairman. Yes; give them. 

Mr. Fishback. Colastine, Kosario, Buenos Ayres, and Bahia Blanca. 

The Chairman. Give us the distances from the farmers to the sea- 
ports as compared with ours. 

Mr. Fishback. The maximum distance I should say would be 300 
miles and from there down to a very short distance. During the har- 
vest the railways find themselves unable to move the wheat; and they 
have as yet no elevator system, and all along the main railway systems 
you can see thousands of bags of wheat stacked up exposed to the 
weather, and the damage, of course, from that is considerable. 
' The Chairman. What is the quality of wheat raised there as com- 
pared with the American wheat? 

Mr. Fishback. I think it is considered equal to it; just as good. 

The Chairman. Does it produce as fine flour? 

Mr. Fishback. Yes, sir ; as fine flour. 

The Chairman. So they are our competitors in the wheat market 
and flour market?* 

Mr. Fishback. They are very strong competitors, and they within 
the last two years have begun to realize their strength as a wheat- 
producing country, and their legislation and all the action of their 
commercial bodies is to make themselves felt as a wheat-producing and 
exporting factor in the civilized world. 

The Chairman. Do they export flour from their country to other 
countries? 

Mr. Fishback. Only to one country — flour to Brazil, which is just 
beginning. 

The Chairman. They- export a good deal of wheat to Brazil, too, and 
that has taken a large part of our wheat and flour trade? 

Mr. Fishback. A good deal of wheat and a good deal of flour goes 
to Brazil. 

The Chairman. Now, what is the distance from their principal port 
of shipment to the rjrincipal ports of Brazil? 

Mr. Fishback. It is called, roundly, a thousand miles. 

EXPORTS OF CATTLE FROM ARGENTINA. 

The Chairman. And what is the distance from New York to Brazil? 

Mr. Fishback. It is 6,380 miles, or something of that sort. Now I 
will say the cattle-exporting business has developed entirely within the 
last five years. When I first went to Buenos Ayres, at the end of 1890, 



100 RECIPROCITY STATEMENTS. 

and during 1891 and 1892 there were no shipments abroad of cattle on 
the hoof nor frozen meat. On January 1, 1896, I know of one house 
who has contracted for 137 vessels alone for the export of sheep and 
cattle. The most of that went to Deptford, England, which is the slaugh- 
tering place for London. There is not a ship that leaves the port of 
Buenos Ay res for Brazil that its decks are not covered with sheep and 
cattle. They land them at the port of Santos, and there take on car- 
goes of coffee — both there and at Bio — for either European ports or 
North American ports. 

The Chairman. Are these cattle and sheep of which you speak of a 
quality that competes in the European market with American sheep 
and cattle? 

Mr. Fishback. They are fully up to the average. 

The Chairman. What is the fact about there being any trade between 
that country and any other of the South American States that inter- 
feres with our dressed-beef trade? 

Mr. Fishback. The export of dressed beef from Argentina to Brazil 
has begun, but as yet it has risen to no great proportion. The planta- 
tion food of Brazil is jerked beef, which is dried in the sun in the Argen- 
tine Republic on the ranches, and is shipped in enormous bales, and that 
destroys the market for our canned beef — preserved beef. 

The Chairman. Is that trade on the increase or not? 

Mr. Fishback. Yes, sir; it is on the increase. The secret of the 
smallness of our business in the Argentine Bepublic, and the object 
which will prevent its increase considerably, is the lack of banking facili- 
ties. It all revolves around that. We pay a tribute to England every 
time we have a commercial transaction in the Argentine Republic. 
Nothing can be done except on London. If there were a line of steam- 
ship service between New York and the Argentine ports, banking 
facilities would very naturally follow it, and that would lead up to a 
great many other things. In the last Argentine Congress there was a 
proposition to subsidize a line of steamers, which involved a concession 
of 100,000 gold dollars a year on the part of the Argentine Republic. 
The proposition was accepted by a New York mercantile house of export- 
ers, who guaranteed the Government to float the company. The con- 
ditions were that the vessels should be at the disposal of the Argentine 
Government at all times in case of war. The bill was defeated in the 
Argentine Senate because the United States had never shown any dispo- 
sition to reciprocate in a like way, and the statement was made that the 
moment the States would consider it favorably Argentina was ready to 
make a generous concession. 

Mr. W. E. Curtis. That requires a little explanation there. This is 
a repetition of what occurred about ten years ago. They did the same 
thing then; offered $100,000. Then we passed our subsidy bill, which 
gave a dollar a mile for steamships — you were on the committee which 
reported it, Mr. Chairman. 

The Chairman. Yes. 

Mr. W. E. Curtis. The Argentine Government was not ready just at 
that time. They were in a period of financial depression and they were 
not ready to respond to that, and the people who were expecting to 
have a double subsidy from us and them were not able to make their 
arrangements, so although they had the plans of the steamers all ready, 
and in one case had contracted for construction, that fell through. 
Then the last Congress of the United States repealed the subsidy act 
so far as this line was concerned, and this left us out without any joint 
action. 



RECIPROCITY STATEMENTS. 



101 



The Chairman. Thereupon Argentina refused to do it? 

Mr. Fishback. Yes, sir. This initiative came from a group of Argen- 
tine moneyed men who wished to have this line direct with the United 
States, and the conditions of concession were so favorable to the Argen- 
tine Government that it received the support of a considerable number 
of senators and very nearly became a law. It will be taken up again 
in the new session which begins in May, and it is thought by a great 
many will go through; but they made the statement in their speeches, 
all of them, on the tioor of the Senate, if the States showed any dispo-i 
sition to cooperate in that way it would receive no opposition whatever 
in their houses. 

The Chairman. I think there is nothing else, unless you think of 
something that will be of benefit to us. 

Mr. Fishback. When I get together these facts and figures, if you 
will allow me I will make a little report to you, including things which 
have not occurred possibly to you, and send it to you from New York. 



STATEMENT OF MR. L. RODRIGUEZ DIEZ, OF MONTEVIDEO. 

The development of the exports of wheat, flour, and corn from the 
Eiver Plate has been very great in the last three years, more than in 
Uruguay. Argentina is a larger country with greater export capacity. 

WHEAT. 

Uruguay's wheat is generally considered better than that from Argen- 
tina — is heavier and gives more flour. The Argentinians buy Uruguay 
wheat to mix with their light classes, and pay higher prices for it. 

The following table shows the exports of wheat from Uruguay : 



Brazil 

Italy 

England 

Spain 

Argentina 

Belgium 

France 

Canary Islands 

Germany 

Denmark 

Portugal 

United States.. 



Destination. 



Total 



1893. 



Quantity. Value 



Kilos. 

1, 272, 655 

2, 756, 296 
987, 768 
965, 848 
605, 874 
221, 330 

66, 320 
21, 890 



$25, 579 

64, 760 

19, 555 

38, 146 

12, 118 

6,107 

2,474 

438 



169, 307 



1894. 



Quantity. Value 



Kilos. 

3, 628, 495 
1, 145, 756 

49, 100, 502 

4, 428, 929 
38, 996, 668 

3, 472, 274 

5, 316, 684 
229, 584 

3, 299, 080 

678, 000 

427, 465 

30, 000 



$61, 684 

19, 478 

834, 708 

75, 292 

662, 943 

59, 029 

90, 384 

3,903 

56,084 

11, 526 

7,267 

510 



1, 882, 



Notice that Uruguay's great market for wheat is Ed gland, and fol- 
lowiDg that Argentina, that buys Uruguay's wheats and exports them. 
Note also that the increase of exports from 1893 to 1894 has been more 
than ten times, and that there are new markets opened. 

I have no accurate statements for 1895, but I know the exports have 
been much greater than in 1894 on account of a large crop. 



102 



RECIPROCITY STATEMENTS. 



Uruguay imported wheat from the States and Knssia in 1889. 
following statement shows the exports of flour from Uruguay : 



The 



Destination. 



Brazil 

Canary Islands 

Argentina 

England 

Italy 

France 

Portugal 



Total . 



1893. 



Quantity. Value 



Kilos. 
11, 400, 588 
125, 880 
11, 500 



$428, 354 

4,328 

345 



433, 027 



1894. 



Quantity. Value 



Kilos. 
333, 306, 378 
153,000 
29, 490 
142, 870 
128, 450 
66, 320 
51, 700 



$948, 341 
4, 302 
826 
4,002 
3,597 
1,857 
1,447 



964, 372 



As you can see, the principal market for Uruguayan flour is Brazil, 
where the prices obtained are higher and the increase of exports tripli- 
cated from one year to another. 

In 1895 the exports were very much larger. 

CORN. 

The exports of corn amounted in 1893 to $23,272 and in 1894 to 
$885,539, and there was a large increase in this line of exports in 1895. 
The principal markets have been Brazil for home use, and Argentina 
for exports. 

There are no differential duties in favor of Uruguayan or Argentinian 
agricultural products in the Brazilian or European markets. The River 
Plate wheats and flours competed with the American product in Brazil 
while the reciprocity treaties were operative, although the Americans 
were free from customs duties and the River Plate wheat had to pay 
them. 

Third. The import duties in Brazil are higher for flour than for wheat, 
and large mills on the modern system have been established in Rio 
Janeiro and Santos by Argentina and Uruguay millers in order to grind 
River Plate wheat and avoid competition. There are no more wind- 
mills erected in South America. They are all now mounted on Hunga- 
rian stones and moved by steam power. 



CATTLE. 

The exports of live cattle from Uruguay are principally to Brazil, value 
amounting to $645,713. The increase in this line was enormous in 1895. 
In fact, all steamers leaving Buenos Ayres or Montevideo for Europe 
carry large numbers of live cattle, sheep, and hogs to Santos and Rio 
Janeiro. 

BEEF. 

The value of j erked beef exported from Urugu ay in 1894 was $5, 719,029 ; 
packed meat, $4,469; extract of beef, $2,271,059; liquid beef, $24^300; 
salted hides, $4,730,162, and dried hides, $1,715,344. 

Not counting salted and dried calfskins and other animal products, 
the prices of cattle on the 15th of January of this year at the stock 
yards in Montevideo were: 

For packing purposes — Bullocks, from $12.50 to $18 per head; steers, 
from $9.50 to $18 j cows, from $7.75 to $15. 



RECIPROCITY STATEMENTS. 103 

For home use (best cattle) — Bullocks, from $15 to $22 per head ; steers, 
from $11.50 to $18; cows, from $9.50 to $16; calves, from $2.50 to $6.50. 

Transit— Bullocks, $14.50 per head; steers, from $11.50 to $15; cows, 
from $7.50 to $10. 

These cattle leave the stock yards in good condition for fattening 
purposes. Steers weighing 1,000 pounds are not worth more than $15 
to $18, and those weighing 1,500 pounds or more, $20 to $22. 

The number of cattle in Uruguay is over 10,000,000 head, and 
25,000,000 sheep. Excepting tame bullocks all the rest of the cattle 
are fed and fattened in wire-fenced fields and yards. 

The principal slaughtering country in South America is Uruguay. 
Its exports of jerked beef, salted, packed, and Liebig's extract are larger 
than Brazil and Argentina together. Argentina exports live cattle to 
Brazil, Europe, and Chili. Brazil has not enough cattle in the Province 
of Rio Grande for home needs, and imports from Uruguay and Argen- 
tina. Argentina's leaner jerked beef is mostly exported to Cuba, and 
the fat Uruguayan jerked beef to Brazil. Lean cattle from Brazil and 
Argentina are fattened in Uruguay's rich pastural fields, and used in 
the jerking and packing houses, selling at lower prices than native 
cattie, which are considered better. The slaughtering houses in Uru- 
guay are located in the port of Montevideo, on the banks of the river 
Uruguay, and on the railway tracks in the center of the country. Cattle 
are driven to the packing houses or brought in railway cars. Cross- 
bred cattle are increasing rapid ly . The low prices for which Uruguayan 
cattle can be obtained, with all sort of facilities to breed, fatten, and 
manage them, are a great inducement for capital and enterprising peo- 
ple interested in the packing business. Certain benefits are to be drawn 
out of this industry. 

AGRICULTURE. 

The same should be said regarding agriculture. With a mild climate, 
American implements, rich agricultural lands, from $2 to $4 per acre, 
river and railway means of communication, and low freights for exports, 
if the cultivation of agricultural products can not be dont j , there with 
prospects of large incomes, it can not be done in any country in the 
world. The sheep products increase ever year, refining constantly 
the light, fine, elastic, long staple merino wool that is peculiar to that 
country, and producing mutton of good weight and exquisite flavor, 
which is well appreciated in foreign markets. 

WOOL. 

The removal of the duty on wool by the Congress of the United States 
has not affected the prices or exports of wool in the River Plate; the 
development of exports to the United States depends on the needs and 
development of American manufactures, to be able to compete with 
Europeans for home use and exports having in hand good cheap material. 
American buyers will purchase their stocks where they find them more 
convenient to their interests, in the producing countries, raw or washed, 
or in the great European wholesale markets. 

COMPTER CE. 

The commerce between the United States and the River Plate can be 
developed — 

(1) By American capital and people interesting themselves there in 
this business. ■ 



104 RECIPROCITY STATEMENTS. 

(2) By being mutually well represented as ministers and consuls by 
men acquainted with North and South American means and needs; the 
right men in the right place. 

(3) By direct line of steamers running regularly, and low freights. 

(4) By facilities of commercial exchanges and direct banking com- 
munications. 

(5) Keciprocity treaties should not be neglected. The beginning 
would be to establish friendly and commercial treaties, embracing a few 
matters of reciprocity convenient now, with the intent of extending 
them later on, after seeing the results of practice and study. Commer- 
cial treaties can not be made on the same basis with Brazil, Argentina, 
and Uruguay. 

In Uruguay American goods pay very low import duties; in Argen- 
tina, much higher. 

For additional details I refer you to the statistics from Uruguay pub- 
lished in 1895, where all the trade details can be found; the Hand Book 
of Uruguay, published by the Bureau of American Bepublics in 1893, 
and a number of the Bural Association in Montevideo, corresponding 
to January 15, 1896, where special information can be had. 



APPENDIX O. 



TRADE WITH JAPAN AND CHINA. 



105 



TRADE WITH JAPAN AND CHINA. 



STATEMENT OF MR. WILLIAM E. CURTIS, WASHINGTON, D. C. 

Our commercial relations with Japan are very similar to those with 
Brazil. The balance of trade against the United States is not so large, 
but is in the same proportion. We buy the largest share of the products 
of Japan, and she spends the money we pay for them in England for 
goods which our manufacturers might furnish of equal and often superior 
quality and at similar prices. But it is our own fault. While we have 
been engaged in the development of our internal trade, the British have 
captured the markets of Japan. They have occupied the ports that 
are open to foreign commerce with vast warehouses, sample rooms, and 
wholesale and retail mercantile establishments; they have established 
banks and other conveniences for trade, and although we have excel- 
lent and adequate steamship facilities comparatively few Americans are 
engaged in business in Japan, and our manufacturers have shown but 
little energy or zeal in introducing their goods. On the contrary, the 
few American merchants that are now doing business in Japan com- 
plain that they experience great difficulty in filling orders in this coun- 
try unless they are willing to pay cash in advance. 

I spent the summer of 1895 in Japan, investigating the commercial 
and industrial opportunities that were offered for American enterprise, 
and had the benefit of the opinions and experience of nearly every 
American merchant in the Empire. The results of my inquiries appear 
at length in a recently published volume entitled 

"THE YANKEES OF THE EAST," 

and incidents are therein recited . which will astonish those who are 
in the habit of boasting of American enterprise. A notable instance 
occurred while I was in the country, and came under my personal obser- 
vation. The municipal government at Tokyo, which has as good a credit 
as any city in the world — as good as that of London, or Boston, or Ber- 
lin — was introducing modern waterworks, and invited, proposals from 
three American manufacturers to furnish $600,000 worth of iron water 
pipe. Two of them declined outright. The third submitted a bid, which 
was very much lower than any from Europe, but was accompanied by a 
stipulation that delivery and payment should be made in the United 
States instead of in Japan, as the specifications required. The city 
officials of Tokyo were justly indignant at this reflection upon the in- 
tegrity of their government and awarded the contract to a Belgian 
manufacturer, who accepted it eagerly and is said to have made a large 
profit. 

A second letting for a similar amount of pipe occurred a few months 
later, and, having recovered somewhat from their indignation, the city 
officials again invited bids from American manufacturers. Two firms 
sent agents to Japan to make inquiries, and their reports were not only 

107 



108 



RECIPROCITY STATEMENTS. 



favorable but were indorsed by the United States minister and the con- 
sul-general. When they reached headquarters in this country, one of 
the companies had become frightened by a sudden increase in the price 
of iron and decided not to take any chances on a $600,000 contract. 
The manager of the other company called a meeting of his board of 
directors, and laid before them the reports from their vice-president who 
had gone to Japan. After a long and serious discussion, in which a good 
deal of feeling was disclosed, a majority of the directors decided that if 
the Japanese Government wanted to buy pipe of them they must agree 
to have it inspected and paid for before it left the United States. A bid 
was submitted on those conditions, and a committee of the Tokyo com- 
mon council, having the matter in charge, threw it out without a moment's 
consideration. The contract was awarded to a Glasgow company. Thus, 
in a single instance, profitable sales of $1,200,000 worth of merchandise 
were rejected simply from a lack of confidence in the financial integrity 
of the Japanese, although it may be said that the Government of that 
Empire has never defaulted upon a contract and pays cash for everything 
it buys. Directly or indirectly during the year ending June 30, 1895, 
the Japanese authorities expended over $15,000,000 in England alone, 
and there has never been the slightest complaint or criticism of their 
conduct or integrity. 

The American merchants doing business in Yokohama will testify 
that the incident of the water pipes is not unusual, and that nearly all 
those who have endeavored to extend our export trade in Japan have had 
similar experience with American manufacturers. European merchants 
and manufacturers consider the commercial risk in Japan less than at 
home, and many of them have resident agents seeking contracts. This 
alone is sufficient to account for the existing condition of affairs. 

THE FOREIGN COMMERCE OF JAPAN. 



During the calendar year of 1895 the foreign commerce of Japan 
amounted to 265,372,756 in silver yen, which is equivalent to about 
$145,000,000 in American gold. The Japanese yen corresponds to the 
Mexican silver dollar, which is the actual standard of value, and which 
at this writing is quoted at 56 cents. The total exports during the year 
were 136,112,177 yen and the imports 129,260,578 yen, showing an excess 
of exports amounting to 6,851,599 yen. 

Although for nearly six months of the year Japan was engaged in a 
foreign war, this was the high tide of her commerce. 

The following table will show the growth of the trade since 1872, 
when the foreign commerce of Japan may be said to have been inaugu- 
rated. The values are given in the native yen. 



Tear. 


Exports. 


Imports. 


Total. 


Rate of 
increase. 


1872 


17, 026, 647 

27, 711, 527 

28, 396, 386 
52, 407, 681 
79, 527, 272 

113, 246, 086 
136, 112, 177 


26, 174, 814 
23, 964, 678 
36, 626, 601 
44, 304, 251 
62, 927, 268 
117, 481, 955 
129,260,578 


43, 271, 462 

51, 676, 206 

65, 021, 987 

96, 711, 932 

142,454,540 

230, 728, 041 

265, 372, 756 


Per cent. 


1876 


19.6 


1880 


25.8 


1887 


51.1 


1891 


47.3 


1894 


61.9 


1895 


15 







During these twenty-four years, therefore, the increase of exports has 
been 671 per cent, and the increase of imports 453 per cent, and that 
of the total trade 549 per cent. A noteworthy feature is the gradual 



RECIPROCITY STATEMENTS. 



109 



increase in the exports of manufactured articles, which, although not 
so great as those of tea, silk, and other natural products, have more 
than trebled during the last five years. The most rapid growth of trade 
is shown with Asia, Australia, and the East Indies, which are the nat- 
ural markets for the manufactured products of Japan. 

The following table shows the total value in silver yen of merchandise 
exported to and imported from Europe and the United States during 
the eleven years from 1885 to 1895, inclusive: 



Country. 



Exported 
from Japan. 



Imported by- 
Japan. 



France 

Great Britain 

Germany 

Italy 

Russia 

Austria 

Switzerland 

Holland 

Belgium 

Turkey 

Spain ■ 

Denmark 

Norway and Sweden 

Portugal 

Total trade with Europe 
Trade with United States 

Grand total 



156,401,502 

60, 524, 995 

14, 994, 303 

12, 605, 295 

3, 343, 537 

3, 283, 868 

2, 623, 908 

1,193,707 

765, 546 

157, 318 

136, 036 

10, 934 

6,473 

3,073 



256, 050, 495 
318,446,188 



574, 496, 683 



35, 

281, 

63, 

1, 

5, 



594, 814 
588, 004 
965, 576 
257, 825 
619,114 
342, 436 
664, 339 
491, 643 
506, 297 

30, 809 
319, 900 
464, 355 
417, 866 

52, 516 



405, 315, 494 
67, 237, 269 



472, 552, 763 



JAPANESE TRADE WITH THE UNITED STATES. 



A comparison of the trade of Japan with the United States and 
Great Britain is even more startling. The following are the totals for 
the last eleven years : 



Country. 


Exported 
from Japan. 


Imported by 
Japan. 




Ten. 

60, 524, 995 

318, 446, 188 


Ten. 
281,588,004 




67, 237, 269 





Thus in eleven years Japan has sold the United States more of her 
products by 62,395,693 yen than all the nations of Europe combined, 
and at the same time she has purchased from them more than 338,- 
078,225 yen in excess of her imports from the United States. In other 
words, she has been dependent upon us for a market for her staples, 
which are silk and tea, and ought to have been a liberal buyer of our 
merchandise. We have -the friendship of the Government and the 
people. Great Britain has their hostility and their trade. 

Tbe people of the United States are more to blame for this com- 
mercial phenomenon than the Japanese. If our merchants and manu- 
facturers had shown the same energy and patience that the British 
merchants have in seeking the trade of Japan, the balance might have 
been on the other side of the ledger. The conditions of trade in Japan 
are precisely like those in China, Mexico, Central and South America, 
and the West Indies. The manufacturers of Great Britain, Germany, 
and France, particularly those of the first-named country, went to the 
treaty ports as soon as Commodore Perry, of our Navy, opened Japan 
to foreign trade, established agencies, built warehouses, founded banks, 
and took possession of the markets. They discovered what goods were 



110 



RECIPROCITY STATEMENTS. 



wanted, and furnished what was suitable to the peculiarities and 
requirements of the people. Meanwhile the manufacturers of America 
took no interest in the great market that was being developed there 
because they had so much to do at home. 

At the same time the European merchants in Japan have been ship- 
ping to the United States the products of that country because our 
people are willing to pay better prices for the luxuries of life than those 
of any other nation. 



HOW THE JAPANESE TRADE IS DIVIDED. 

The following table shows the value, in silver yen, of the exports of 
Japan to and imports from various foreign countries during the calendar 
year 1895: 



Country, 



Exports. 



Imports. 



Total. 



United States 

France 

Hongkong 

China 

Great Britain 

British. India 

Korea 

Italy 

Germany 

Canada and other British America 

Russian Asia 

Australia 

Switzerland 

Austria 

Hawaii 

Holland 

Philippine Islands 

Belgium 

Bussia 

Turkey 

Spain 

Anram and other French India . . . 

Siam 

Peru 

Denmark 

Sweden and Norway 

Portugal 

Other countries 



Total. 



54, 028, 950 
22, 006, 386 
18, 362, 802 
9, 135, 108 
7, 883, 240 
4, 359, 236 
3,831,476 
3, 550, 735 
3, 340, 022 



5,169 

247, 523 

281,103 

467, 718 

450, 625 

393, 689 

283, 382 

191, 831 

131, 944 

75, 222 

62, 215 

48, 422 

17, 554 

7,930 

7,180 

5,347 

185 



358, 138 



9, 276, 360 

5, 180, 134 

8, 078, 189 

22, 985, 144 

45, 172, 110 

12, 001, 810 

2, 925, 399 

148, 465 

12,233,158 

13, 717 

1, 371, 612 

1, 031, 725 

1, 040, 211 

25, 121 

2,163 

61, 535 

1, 220, 744 

2, 0o6, 244 

46, 045 

5, 584 

47, 148 

3, 382, 671 
143, 095 

3,377 
8,319 

208, 335 
7,175 

574, 973 



133, 516, ! 



129, 260, 578 



63, 305, 310 
27, 186, 520 
26, 440, 992 
32, 120, 153 
53, 055, 202 
16, 361, 046 
6, 756, 876 
3, 699, 201 
15, 573, 171 



1, 999, 887 

2, 619, 135 

2, 312, 828 
1, 507, 929 

475, 746 

395. 852 

344, 918 

1, 415, 576 

2, 198, 188 

121, 268 

67, 800 

95, 570 

3, 400, 227 
151, 025 

10, 558 
13, 667 

208, 520 
7,175 

933, 111 



262, 777, 564 



EXPORTS OF JAPAN, BY CLASSES. 

The chief exports from Japan in 1894, given below, convey a fair idea 
of the trade: 

Raw silk $21,446,375 

Textile fabrics, mostly silks 8, 867, 743 

Food products, mostly rice 5, 416, 098 

Tea 3,965,243 

C oal t 3, 298, 214 

Metals, mostly copper 3, 015, 180 

Matches 1,897,817 

Drugs and medicines - 1, 230, 811 

Floor matting 987, 746 

Porcelains ... 742, 426 

Fish oil and vegetable wax 639, 095 

Lacquer ware : 398,769 

Umbrellas 388, 031 

Straw plaiti u g 371, 699 

Bamboo and wooden ware 289, 498 

Tobacco 274,137 

Fans 171, 533 

Paper and stationery 163, 320 



RECIPROCITY STATEMENTS. 



Ill 



IMPORTS OF RAW COTTON. 

The following statement shows the number of bales, or piculs, of raw 
cotton imported into Japan during the five years from 1891 to 1895, 
inclusive, and the countries from which it came. A very large part of 
that credited to China and India came from the United States, having 
been transshipped both at Liverpool and Hongkong. A picul, which 
is the standard bale in Japan, weighs 133 pounds. 



Country. 


1891. 


1892. 


1893. 


1894. 


1895. 




265, 641 
459, 960 

53, 044 
4,718 

17, 478 


362, 257 
661, 826 

91,853 
915 

\6, 631 


365, 924 
713, 364 

61, 603 
1,101 

16, 326 


446, 203 

621, 400 

120, 568 

144 

10, 662 


517, 437 




907, 688 




119, 961 




503 




5,938 






Total 


800, 841 


1, 133, 482 


1, 158, 318 


1, 198, 977 


1, 551, 527 







Principal exports and imports of Japan. 
EXPORTS. 



Articles. 



1895. 



Quantity. Declared value. 



1894. 



Quantity. Declared value. 



Antimony catties . 

Bamboo 

Ware 

Bronze ware 

Camphor catties . 

Carpets (hemp or cotton) number. 

Coal and dust coal tons . 

Cocoons (pierced and waste) catties . 

Copper : 

Ingot , do. . . 

Slab do... 

Sheet, and other manufactured .do. . . 

Copper ware 

Cotton : 

Raw catties . 

Piece goods — 

Chijimi pieces. 

Flannel do. . . 

Tenugniji and other do. . . 

Undershirts and drawers dozen. 

Tarn catties . 

Cuttlefish do... 

Fans number. 

Fish and rape-seed oil catties. 

Floss silk and waste do... 

Flour do. . . 

Furs number . 

Furniture 

Ginseng catties . 

Glassware 

Iriko (beche demer) catties. 

Ivory ware 

Kan ten (colle vegetale) catties. 

Lacquered ware 

Manganese catties . 

Matches gross . 

Mats for floors 

Menthol crystal. . catties. 

Mushroom (shiitake) do. . . 

Paper ware 

Peppermint oil catties. 

Porcelain and earthenware 



2, 413, 185 



2, 238, 386 
685, 536 

1,844,815 
176, 944 

6, 558, 406 
8, 431, 204 
9, 197, 160 



774, 547 

469. 595 

292.415 

1, 646, 887 

76, 657 

3, 532, 893 
6,401,207 

11, 573, 861 

12, 167, 829 

56, 996 

4, 854, 539 
242, 319 



299, 636 
"i, 021,821 



1, 118, 773 



27,448,142 
16, 914, 027 



30, 836 
1, 359, 237 



31,900 



Yen* 
289, 935. 30 
283, 138. 09 
417,093.90 
229, 290. 90 
526, 831. 94 
635, 902. 08 
604, 788. 22 
178, 571. 65 



1, 340, 583. 72 

1, 693, 376. 92 

2, 123, 706. 80 

101, 341. 66 

171, 926. 80 



585, 
400, 

1, 329, 
96, 

1, 034, 
996, 
399, 
572, 
14, 
191, 
262, 
103, 
373, 
346, 
316, 
106, 
449, 

1, 083, 
196. 

4, 672, 

3,461, 
197, 
522, 
506, 
112. 

1, 955, 



908. 66 
519. 77 
511. 58 
992. 52 
478. 70 
029. 95 
519.22 
060. 16 
307. 01 
848. 35 
901.82 
480. 81 
648. 08 
476. 90 
908. 71 
598. 79 
271. 25 
212. 46 
598. 59 
811.55 
369. 88 
411.27 
944. 69 
932. 98 
869. 92 
060. 13 



2, 682, 813 



2,071,378 
546, 091 

1, 701, 130 
268, 381 

9, 645, 269 
6, 074, 919 
9, 683, 904 



540, 151 

1, 088, 389 

158, 989 

705, 339 

100, 586 

3, 538, 868 

9, 483, 425 

9, 049, 034 

16, 804, 319 

169, 493 

3, 309, 426 

175, 937 



326, 172 


929, 107 


1, 298, 422 


29, 341, 892 
13, 843, 022 


21, 135 
1, 339, 843 



57,: 



Yen* 

254, 261. 46 

188, 963. 60 

298, 245. 77 

183, 687. 89 

1, 023, 956. 35 

1, 134, 072. 71 

6, 578, 460. 89 

227, 572. 59 



1, 799, 435. 08 

1, 155, 862. 96 

1, 945, 456. 36 

134, 970. 19 

119, 153. 67 



067, 
221, 
571, 
133, 
955, 
162, 
319, 



141, 

111, 

102, 

499, 

258, 

294, 

98, 

495, 

797, 

198, 

3, 795, 

1, 965, 

143, 

573, 

303, 

242, 

1, 484, 



572. 95 
917. 58 
712.44 
547. 44 
529. 95 

453, 03 
416.24 

538. 82 
786. 97 

454. 66 
392. 90 
212. 08 
798. 07 
956. 81 
323. 84 
285. 90 
625. 39 

539. 30 
810. 37 
634. 90 
493.11 
107. 25 
511.29 
795. 42 
774. 25 
853. 84 



Silver. 



112 



RECIPROCITY STATEMENTS. 
Principal exports and imports of Japan — Continued. 



EXPORTS— Continued. 



Articles. 



1895. 



Quantity. Declared value. 



1894. 



Quantity. Declared value. 



Rags catties . 

Rice piculs . 

Sake sho . 

Salt catties . 

Screens .number. 

Seaweeds catties. 

Cut do . . . 

Sharks' fin s do. . . 

Shellfish: 

Awabi do. . . 

Kainohashira do... 

Shrimps do . . . 

Silk: 

Raw .do... 

Noshi do... 

"Waste do . . . 

Handkerchiefs dozen . 

Piece goods — 

Habutae pieces . 

Chirimen and other do... 

Straw plaits bundles . 

Sulphur catties . 

Tea: 

Green — 

Pan fire do... 

Basket fire do... 

Dust do... 

All other do. . . 

Timber, wood, and planks 

Tobacco, leaf catties . 

Umbrellas, European number. 

Vegetable wax catties . 

Wood ware 

All other articles, unenumerated 



Total 

Reexported articles. 

Total exports. 



2, 484, 340 

1, 798, 983 

1, 978, 705 

24, 687, 032 

154, 909 

39, 033, 128 

5, 796, 883 

309, 549 

1, 060, 898 

156, 913 

1, 535, 159 

5, 810, 046 
1,596,777 
2,225,413 
1, 855, 574 

525, 961 

155, 886 

3, 478, 639 

26, 445, 913 



26, 266, 785 
4, 552, 166 
6, 415, 472 
1, 592, 238 



1, 630, 715 

2, 792, 330 



Yen* 
57, 029. 67 

7, 209, 755. 52 
415, 333. 95 

97, 463. 55 
366, 009. 99 
514, 275. 22 
116, 016. 14 

95, 880. 45 

396, 800. 26 

39, 833. 44 

222, 821. 89 

47, 866, 256. 93 
1, 347, 255. 92 
1, 515, 463. 76 
5, 339, 955. 27 

8, 354, 489. 88 
1, 643, 356. 45 
1, 387, 643. 46 

296, 136. 20 



7, 226, 
1, 225, 

308, 
129, 
261, 
216, 
735, 
334, 
398, 

8, 997, 



903. 27 
080. 74 
017. 04 
240. 49 
532. 00 
613. 35 
207. 13 
846. 60 
349. 58 
299. 94 



12, 673, 533 

1, 425, 780 

958, 872 

16, 100, 052 

134,209 

35, 851, 245 

5, 999, 134 

297, 689 

1, 165, 131 

541, 710 

1, 283, 965 

5, 484, 059 
1, 701, 211 
2, 153, 120 

1, 435, 674 

434, 767 
136, 007 

2, 062, 697 
21, 103, 646 



25, 720, 434 

4, 615, 370 

5, 340, 560 
1, 867, 223 



1, 992, 844 
1, 960, 661 
4, 401, 195 



Yen* 
284, 919. 20 
5, 595, 398. 49 
186, 101. 21 
68, 255. 97 
282, 349. 38 
467, 235. 32 
139, 793. 35 
102, 215. 39 

445, 570. 93 
127, 930. 12 
171, 780. 74 

39, 353, 155. 62 
1,632,211.45 
1, 576, 381. 47 
3, 628, 128. 71 

7, 254, 478. 37 

1, 175, 522. 24 

743, 399. 10 

244, 542. 26 



, 430, 902. 90 
138, 286. 58 
248, 014. 90 
113, 082. 54 
275, 822. 01 
259, 675. 34 
746, 067. 75 
562, 134. 64 
280, 753. 63 
868, 921. 54 



134,991,029.82 
1, 121, 148. 10 



112, 171, 175. 47 
1, 074, 910. 68 



136, 112, 177. 92 



113,246,086.15 



IMPORTS. 



Alcohol catties . . 

Aniline dyes do 

Beans, pease, and pulse do 

Caustic soda do 

Chlorate of potash do 

Cigarettes 

Coal tons . . 

Cotton : 

Raw catties . . 

On the seeds do 

Chintzes or printed cotton . . .yards. . 

Drills do 

Handkerchiefs dozens . . 

Satins, broad or not yards . . 

Velvets do 

Shirtings — 

Gray do 

Twilled do.... 

White do 

T cloths do.... 

Turkey reds do 

All other cotton piece goods. . .do 

Tarn catties.. 

Dried sardines, for manure do 

Elax, hemp, and iute do 

Flour of all kinds do 

Hides (buffalo and cow) do 

Indigo (d ry ) do ... . 



4, 894, 718 
803, 906 

121, 789, 578 

5, 855, 175 
1, 734, 734 



68, 931 

143, 468, 259 

11,684,469 

3, 785, 967 

3, 693, 018 
335, 633 

4, 628, 358 
2, 209, 984 

46, 082, 003 
565, 290 

5, 394, 799 

2, 945, 918 
5, 261 , 157 

3, 535, 028 
14, 591, 083 

432, 342 

8,891,642 

10, 576, 145 

3, 915, 214 

444, 128 

* Silver. 



Ten* 
440, 904. 58 
682, 137. 60 
2, 554, 763. 58 
234, 000. 46 
419, 053. 60 
303, 871. 10 
853, 079. 79 

24, 304, 814. 23 
517, 283. 06 
383, 364. 94 
519, 972. 03 
204, 683. 52 
794, 136. 27 
486, 097. 11 



3,071, 
57, 
505, 
241, 
418, 
416, 

7, 082, 
8, 
645, 
413, 
695, 
581, 



495. 92 
469. 13 
719. 66 
462. 77 
790.78 
575. 76 
975. 36 
560. 88 
840. 62 
427. 33 
984. 98 
369. 59 



1, 943, 373 
650, 598 

137, 752, 255 
4, 622, 642 

2, 492, 548 



37, 247 

108, 415, 609 

11,515,576 

5, 155, 964 

1,381.417 

328, 065 

7, 831, 153 

2, 897, 581 

41, 439, 972 

1, 753, 734 

3, 658, 217 

2, 626, 361 

2, 302, 398 

3, 384, 697 

15, 942, 797 
10,412,625 

7, 069, 472 

16, 051, 617 
2, 355. 831 

248, 938 



Yen* 
174, 185. 82 
543, 494. 38 
2, 977, 794. 64 
205, 466. 84 
840, 640. 38 
232, 343. 66 
472, 757. 09 

19, 103, 922. 98 
506, 837. 54 
521, 697. 03 
172, 598. 89 
199,846.51 
1, 266, 150. 63 
700, 150. 63 



2, 935, 
171, 
337, 
212, 
225, 
415, 

7, 977, 
193, 
537, 
641, 
394, 



033. 52 
694. 13 
607. 09 
318. 16 
285. 30 
720. 38 
365. 73 
636. 38 
924. 96 
929. 67 
892. 19 
861. 41 



RECIPROCITY STATEMENTS. 



113 



Frincipal exports and imports of Japan — Continued. 
IMPOETS— Continued. 



Articles. 



1895. 



Quantity. Declared value 



1894. 



Quantity. 



Declared value 



Iron: 

Pig catties . 

Bar and rod (round, square, flat, 
etc.) catties . 

Plate and sheet (including diagonal 
and galvanized) catties . 

Nails, and galvanized iron nails . do . . . 

Pipes and tubes 

"Wire and telegraph wire . . .catties. . 

Band, hoop, nail rod, roofing, and 

other manufactured catties . 

Kerosene oil gallons . . 

Lead and sheet lead catties.. 

Leather, sole and other do — 

Locomotive engines, railway carriages, 

and parts of 

Logwood, extract of catties . 

Machinery 

Materials for railways , 

Oil cakes catties . . 

Paraffin wax do 

Phosphorus, amorphous do 

Printing paper do 

Rail do... 

Rice piculs . . 

Salicylic acid catties. . 

Satins, silk and cotton mixtures, .yards. . 

Steam boilers, engines, and parts of 

Steel... catties.. 

Sugar : 

Brown do — 

White do... 

Tin do... 

Plates cases . . 

Watches number. . 

"Window glass cases . . 

"Wine, in bottles and casks 

"Wool catties.. 

Blankets do 

Flannels yards . . 

Italian cloths do 

Mousseline de laine do 

Woolen cloths do — 

In part wool do — 

All other woolen piece goods and cot- 
ton mixtures yards . . 

Yarn catties . . 

Zinc and sheet zinc do 

All other articles, unenumerated 



58, 859, 698 

73, 639, 244 

29, 305, 915 
24, 286, 896 



6, 612, 287 

4, 257, 835 

44, 152, 414 

6, 036, 031 

3, 120, 488 



Yen* 
673, 795. 70 

2, 085, 684. 09 

1, 038, 793. 59 

1, 279, 407. 00 

604, 753. 36 

348, 146. 86 

168, 904. 97 
4, 303, 928. 94 

358, 436. 26 
1, 590, 596. 20 



61, 081, 416 
46, 839, 223 

24, 634, 101 

25, 325, 004 



4, 715, 612 

4, 263, 187 

55, 643, 719 

4, 312, 732 

1,553,182 



Yen.* 
743, 552. 83 

1, 339, 033. 96 

889, 184. 87 

1, 333, 149. 53 

484, 086. 40 

227, 026. 58 

177, 146. 88 

5, 135, 332. 26 

267, 149. 63 

880, 622. 89 



967, 670 



57, 189, 965 

2, 557, 704 

160, 447 

2, 853, 946 

43, 304, 127 

1, 685, 352 

151,985 

81, 587 



6, 919, 739 

111, 877, 023 
129, 548, 753 
537, 631 
48, 564 
188, 722 
110, 364 



2,829,556 
1,911,955 
2, 715, 037 
3, 188, 882 
20, 333, 183 
2, 012, 344 
312, 014 

1, 184, 400 

889, 163 

6, 392, 504 



1, 806, 
218, 

4, 090, 

1, 253, 
946, 
266, 
260, 
307, 
925, 

4, 357, 

285, 

37, 

431, 

503, 

4, 074, 
7, 645, 
191, 
251, 
923, 
309, 
314, 
1, 136, 

1, 569, 
961, 
921, 

3, 633, 

2, 951, 
169, 



911. 40 
838. 86 
526. 26 
343. 22 
027. 55 
340. 42 
822. 78 
699. 28 
531. 38 
096. 29 
585. 08 
308.70 
925. 36 
571. 29 

241. 39 
864. 94 
936. 08 
131.43 
022. 58 
801. 70 
828. 96 
951. 00 
425. 35 
331. 80 
741. 25 
467. 96 
041. 93 
265. 74 



1, 426, 555 



53, 291, 952 

2, 729, 793 

118, 534 

2, 533, 080 

57, 772, 865 

3, 304, 628 

62, 793 

344, 099 

""^985," 909' 

113, 806, 711 

109, 343, 475 

468, 123 

53, 559 

78, 272 
78, 834 



467, 273. 17 

951, 035. 29 

635, 477. 22 

26, 993, 650. 58 



1, 485, 526 
755, 573 
856, 269 
6, 481, 638 
19, 042, 850 
507, 356 
317, 381 

634. 224 

490, 475 

4, 498, 717 



1, 735, 
303, 

4, 201, 
881, 
822, 
263, 
178, 
257, 

1, 209, 

8, 413, 
193, 
235, 
215, 
362, 

4, 551, 

8, 689, 

179, 

296, 

404, 

246, 

222, 

567, 

572, 

308, 

1, 759, 

3, 150, 

641, 

175, 



373. 02 
850. 86 
694. 20 
805. 36 
195. 36 
015. 06 
231. 88 
857. 36 
205. 40 
148. 20 
677. 32 
505. 06 
155.04 
365. 84 

848. 27 
748. 05 
068. 38 
284. 90 
646. 22 
032. 62 
770. 96 
197. 22 
808. 14 
833. 79 
795. 65 
823. 17 
270. 06 
559. 01 



233, 120. 26 

563,501.38 

493, 824. 06 

21, 273, 707. 56 



Total 

Beimported articles. 

Total imports . 



129, 083, 297. 32 
177, 280. 96 



117,371,361.43 
110, 594. 03 



129, 260, 578. 28 



117, 481, 955. 46 



* Silver. 
EXPORTS OF SILK GOODS. 



There has been an enormous increase in the exports of silk handker 
chiefs and silk piece goods from Japan, as the following table will show] 



Tear. 


Silk hand- 
kerchiefs. 


Silk piece 
goods. 


1887 


$1, 146, 280 

1, 233, 927 
2, 104, 459 

2, 516, 946 

2, 811, 820 
3,494,417 

3, 899, 646 
3, 628. 128 
5, 399, 955 


$135, 224 


1888 


258, 033 
623, 456 


1889 


1890 


1, 167, 868 


1891 


1, 763, 716 


1892 


4, 434, 078 


1893 


4, 074, 993 


1894 


8, 399, 494 


1895 


9, 997, 846 







H. Eep. 2203 8 



114 RECIPROCITY STATEMENTS. 



SILK AND TEA. 

The United States is the largest buyer of raw silk, taking nearly 
one-half of the whole product. There has been a considerable increase 
of late in the shipments to France, which is the second buyer. Italy 
and Switzerland also are taking raw silk from Japan. The United 
States takes almost two-thirds of the silk piece goods. France comes 
second; those two countries buy seven-eighths of all that is exported. 
Great Britain bought less than $250,000 in 1894, and that was a very 
large increase over 1892, when she bought only $39,000 worth. 

The exports of tea amounted to 37,390,822 catties, a catty being 1^ 
pounds. One hundred catties make a picul — 133 pounds. The United 
States takes three fourths of the tea produced in Japan. British 
America is the second buyer. 

The following table shows the general character of the merchandise 
imported into Japan and the value of each class of goods included in 
her imports during the year 1894, the amount having been reduced to 
American gold: 

Raw cotton $9,551,961 

Machinery 7,974,542 

Sugar 6,662,260 

Breadstuff's, including rice 5, 877, 068 

Cotton yarn 4,888,682 

Iron and steel , 4, 589, 384 

Woolen goods 3, 991, 440 

Cotton fabrics 2, 888, 266 

Oil and wax, mostly kerosene 2, 845, 996 

Drugs and medicines 1, 798, 140 

Dyes and paints 986, 641 

Furs, hides, and leather 904, 034 

Provisions 886, 602 

Copper, brass, and lead 876, 973 

Books and stationery 451, 782 

Oilcakes 411,097 

Hemp and jute 403,961 

Other textiles 279,357 

Silk goods 261 , 492 

Wines and liquors 251, 672 

Glassware 183,883 

Clothing 179,811 

PECULIARITIES OF THE TRADE. 

As will be noticed, raw cotton is the largest item of import, and it 
furnishes an illustration of the very rapid increase in the manufacture 
of textiles in Japan. The imports of cotton have doubled within the 
last two years, but only $1,340,000 was sent direct from the United 
States. The balance was bought through commission houses at Liver- 
pool and transshipped at that port. 

Great Britain furnished 99 per cent of the cotton yarns and threads 
and nearly all the textiles that were imported. They consisted of cot- 
ton drills, shirtings, sheetings, lawns, prints, satins, handkerchiefs, and 
velvets. The second item of importance, machinery, covers a very 
large variety of articles, as follows : Electric plants, locomotive engines 
($790,000), mining machinery, spinning machinery ($1,429,000), boilers 
and engines ($107,000). Most of it was furnished by Great Britain. 

Although Japan exported nearly $5,500,000 worth of rice in 1894, she 
imported nearly as much, which came from Siam, French India, China, 
Korea, and British India. The reason for this freak of trade is that the 
people ship their own product to Europe, where it brings the highest 



RECIPROCITY STATEMENTS. 115 

prices, and import a cheaper grade from China and Korea. The Japan- 
ese rice is said to be the best in the world, and to have a particular flavor 
that is more agreeable to Europeans. Other breadstuifs imported into 
the country are beans, pease, and millet, which come mostly from China 
and Korea, and about $300,000 worth of flour from the United States. 

England furnishes the greater portion of the iron and steel imported 
into Japan. The principal items under this head in 1894 were rails 
($604,000), bar and rod ($609,000), iron nails ($666,000), which came 
mostly from Germany, pig iron ($376,000), plate and sheet ($450,000), 
pipes and tubes ($242,000), wire ($42,000), galvanized sheets ($78,000), 
and a little telegraph and steel wire. 

The woolen imports consisted of raw wool from Australia, yarns from 
Germany, cloths from Germany and England, flannels from Germany, 
and blankets from Great Britain. 

It has often been said by facetious travelers that the only exports 
from the United States to Japan are kerosene oil and missionaries. As 
a matter of fact the former article furnishes the largest item in our com- 
merce, averaging 36,000,000 gallons, valued at $2,039,000, while Russia 
sent 9,500,000 gallons, valued at $526,000. 

The drugs and medicines used in Japan come mostly from Great 
Britain, the dyes from Germany, and the perfumeries and cosmetics 
from France. We furnish a good deal of leather, but most of the hides 
come from India and Korea. 

A good deal of condensed milk is shipped into Japan from the United 
States and Switzerland, as they have very few cows there. The butter 
comes from the United States, Holland, and Denmark in tins. The 
grass of the country is not suitable for dairy food. Alfalfa has been 
successfully grown, but you see very little of it. Americans ivho keep 
cows import hay from the United States. Other provisions come from 
Great Britain and the United States in the form of preserved fish, 
fruits, meats, and vegetables. 

Yery little wine and liquor is imported into Japan, and that is used 
almost exclusively by foreigners. There are several breweries and dis- 
tilleries in the country and some wine is made, but the national drink 
is sake — a brandy made from rice — which is used extensively by all 
classes, but you see very little intoxication. 

The annual returns of the foreign trade of Japan for 1894 show a 
list of 196 articles imported from the United States, 204 from France, 
279 from Germany, and 335 from Great Britain. 

GREAT VARIETY OF IMPORTS. 

The list of the United States contains nearly everything that can 
come under the head of general merchandise from lead pencils to loco- 
motives, but, as I have said, the chief value is in petroleum. The 
exports from Germany, France, and England are nearly all manufac- 
tured goods, and consist of articles that might be furnished by the 
United States at equally low prices. Aside from machinery, the largest 
part of the imports of Japan are raw materials for their own factories 
to work over into articles of merchandise, many of which are sent 
abroad. 

A result of the remarkable national spirit that was aroused in Japan 
by the late Avar is a determination on the part of the native merchants 
to control both the import and export trade. The foreign commerce of 
Japan has always been conducted very largely by foreign commission 
houses in the treaty ports, which have stood as middlemen between the 



116 



RECIPROCITY STATEMENTS. 



producer, the manufacturer, and the merchant of Japan, and those in 
foreign countries who have bought from or sold goods to him; but now 
the natives are determined to abolish this system and trade direct. 
This movement is not so much to avoid the commissions charged by the 
middlemen as to gratify the national pride. The following tables, from 
official sources, show the comparative volume of trade handled by the 
foreign and the native merchants during the last eleven years: 

Exports and imports through Japanese and foreigners, 
EXPORTS. 



Tear. 


Japanese. 


Foreigners. 


1885 


Ten. 

2, 303, 743 

5, 713, 201 

6, 555, 436 
7, 142, 916 
6, 900, 775 
6, 207, 489 
8, 839, 025 

11, 471, 009 
14, 362, 029 
20, 348, 535 
26, 328, 816 


Ten. 

31, 390, 019 
41, 628, 570 
43, 996, 087 
56, 599, 289 
61, 641, 543 
48, 767, 636 
69, 144, 863 
77 943 924 


1886 - 


1 887 


1888 


1889 


1890 


1891 


1892 


1893 


74, 085, 809 
92, 897, 551 
107, 188, 169 


1894 


1895 





IMPORTS. 



1885 
1886 
1887 
1888 
1889 
1890 
1891 
1892 
1893 
1894 



Ten. 

2, 344, 986 
2, 566, 150 
5, 030, 231 

8, 593, 755 

9, 778, 014 
19, 629, 759 
14, 324, 841 
13, 932, 769 
16, 891, 696 
34, 324, 804 
38, 829, 338 



Ten. 

25, 724, 772 
28, 332, 800 
37, 365, 703 

53, 820, 247 

54, 349, 248 
61, 033, 110 
47, 692, 803 
56, 263, 748 
70, 908, 139 
83, 157, 151 
90, 431, 240 



This shows a steady increase in the articles exported and imported 
through Japanese firms, the exports having increased more than twelve 
times and the imports more than eighteen times during the period cov- 
ered. But it was only a natural increase accompanying the general 
expansion of trade, that which passed through the hands of foreign 
firms having increased in the same proportion. The fact that Japan's 
foreign trade is in the hands of foreigners remains unchanged. 



THE TOKYO CHAMBER OF COMMERCE 

recently memorialized Parliament on this subject, asking the assistance 
of the Government in securing the control of foreign trade. They even 
went so far as to demand the establishment of native steamship lines, 
in order that they might not be dependent upon foreigners for transpor- 
tation facilities ; and the native merchants and manufacturers have just 
organized what is known as the " Foreign Trade Association," whose 
object may be inferred from the following list of committees: 

1. To report facts important to exporters. 

2. To secure increased facilities. 

3. To prevent the exportation of spurious products. 

4. To secure Government encouragement for the export trade. 

5. For the education of able men for the export trade. 



RECIPROCITY STATEMENTS. 



117 



6. To encourage intimacy between producers and exporters. 

7. To encourage the development of industries for export. 

8. To examine the commercial conditions and requirements of foreign 
markets. 

DEVELOPMENT OF THE COTTON INDUSTRY IN JAPAN AND INDIA. 

As has been stated, the most extraordinary development of Japanese, 
industry is in cotton spinniug and weaving. The first factory was set up 
in 1863 by one of the daimyos. The next was built in 1867, with 750 
spindles, but now operates 82,000, and is the largest in the Empire. 
The industry has grown so rapidly that there are now 61 factories in 
operation, with 580,564 spindles, employing 8,899 men and 29,596 women. 
The factories in course of construction will bring the total number of 
spindles to 820,000. 

It may be said in this connection that the development of the cotton 
industry in India has been quite as great as that of Japan, and is now 
many times larger. The first cotton mill was started in India in 1851, 
and now there are 144, containing 34,146 looms, 3,712,292 spindles con- 
suming 1,375,000 bales of 400 pounds each, and giving employment to 
139,478 persons, of whom 87,293 are men, 26,570 women, 15,036 young 
persons, and 9,579 children. 

There are 100 mills in the Bombay presidency alone. In Bengal there 
are 8 mills, all in the vicinity of Calcutta ; in Madras, 11 ; 4 at Oawnpore, 
2 at Delhi, 1 at Indoe, 3 in Hyderabad, 1 in Barer, 2 in Mysore, 3 in 
the French settlement of Pondichery, and 1 in Travancor. 

Five of 7 new mills which commenced work in 1895 are in the 
Bombay presidency, which possesses 69 per cent of the whole number 
of mills in India, 71 per cent of the spindles, and 79 per cent of the 
looms. 

The nominal capital of the mills so far reported is about $61,000,000, 
but it is probable that the whole capital invested is not far short of 
$66,000,000. 

THE COTTON MILLS OF INDIA. 

The following table shows the number of mills, looms, spindles, and 
persons employed in the cotton mills of India each year since 1879 : 



Tear. 


Mills. 


Looms. 


Spindles. 


Persons 
employed. 


1879 


58 

58 

58 

62 

62 

74 

81 

89 

90 

97 

108 

114 

125 

127 

130 

137 

144 


12, 983 

13, 307 

13, 283 

14, 386 
15, 116 
16, 251 
16, 455 
16, 548 
16, 926 
18, 840 
22, 156 
22, 078 
23, 845 
24,670 
26, 317 
29, 392 
34, 146 


1,436,464 
1, 470, 830 
1, 491, 730 
1, 550, 944 
1, 654, 108 

1, 895, 284 

2, 037, 055 
2, 198, 545 
2, 202, 602 
2, 375, 739 
2, 670, 022 

2, 934, 637 
3, 197, 740 

3, 268, 524 
3, 378, 303 
3, 539, 681 
3, 712, 293 


0) 
39, 537 


1880 , 


1881 


47, 955 


1882 


52, 231 


1883 


53, 624 


1884 


61, 836 


1885 


61, 569 


1886 


71,577 


1887 


72, 590 
80, 515 


1888 


1889 


92, 126 


1890 


99, 224 


1891 


111, 998 
117, 922 
129, 898 


1892 


18S3 


1894 


130, 570 


1895 


139, 478 





1 No record. 



118 RECIPROCITY STATEMENTS. 



THE COTTON INDUSTRY IN CHINA. 

Since the close of the war with Japan and the treaty of peace the 
cotton- spinning industry has commenced what promises to be a very 
rapid and extensive development in China. Until 1896 there was but 
one mill in all China. That was located at Shanghai, and belonged to 
Li Hung Chang and other wealthy natives, in connection with several 
prominent foreigners. It was established in 1889, but burned down 
in 1891. The superstitious natives attributed its destruction to the 
Fungshuy, spirits of the dead who exercise a powerful influence over 
everything that occurs among the living. But the factory was rebuilt, 
and has since been in operation with great profit, although technically 
in violation of the laws of the Empire. The treaty with Japan at the 
close of the war permitted the establishment of manufactories by foreign- 
ers in various parts of the country, and this privilege was immediately 
accepted by foreign capitalists, who organized four companies for the 
purpose of erecting mills at Shanghai, one at Nankin, and two at Han- 
kow. Others were proposed at Canton and other cities of the Empire. 
Several of these companies have raised their capital, purchased their 
machinery, and are erecting buildings; only one, however, is American. 
The rest are British. There seems a tendency among the Manchester 
manufacturers to remove their mills to China, where they can take 
advantage of the cheap labor and the local market. 

THE GROWTH OF POPULATION IN JAPAN. 

Although population does not always represent wealth in a country 
like Japan, where industry and economy are exceptional, it is the most 
important factor in the production of wealth. The increase in popula- 
tion there has been more than 27 per cent in twenty-five years, almost 
entirely from natural causes. Immigration from foreign countries is not 
encouraged. In fact, it is restricted to a greater degree than in any 
other country except China. Foreigners are not allowed to engage in 
business or other occupations, or even reside except in certain limited 
sections of five cities, and the total foreign population in the entire 
Empire is less than 10,000. It is probable that the emigration of natives 
has been greater than the immigration of foreigners during the period 
named. 

The following statement shows the increase of the population of 
Japan since the first census: 

1872 33,110,825 

1880 , 35,929,023 

1885 39,069,691 

1890 40,718,677 

1895 42,187,313 

During the same period the population of Great Britain increased 
about 20 per cent, that of France 6 per cent, that of Germany 9 per 
cent, and that of the United States 24.8 per cent. 

The growth of agricultural products has been chiefly in rice, silk, and 
tea. The increase in rice has been 58 per cent during the last fifteen 
years, the increase in tea 240.3 per cent, and in silk 300.2 per cent. 

DEVELOPMENT OF MANUFACTURING IN JAPAN. 

But the most remarkable development has been in the manufacturing 
industries. There were no factories in Japan until the revolution (and 
restoration of the Mikado) in 1868. All sorts of industry was carried 



RECIPROCITY STATEMENTS. 



119 



on by individuals in the households by primitive processes. In 1870 
there were 44 small manufacturing establishments, in which the labor 
of a few people was assembled, and assisted by modern machinery. In 
1895 there were more than 6,000 manufacturing establishments in opera- 
tion, employing over 04,000 hands, and three fourths of them were run 
by steam power, the remainder by water and electricity. Iron being 
one of the principal materials for manufacturing, the following Avill give 
an idea of the increase in that line, as nearly all the pig iron has to be 
imported: 



Tear. 


Yen. 


Per cent 
of 

increase. 


Year. 


Yen. 


Per cent 

of 
increase. 


1872 . 


50, 781 
1,106,609 
8,828,831 
9,772,065 




1887 


10.890,868 
20, 317, 914 
61, 081, 416 


11.5 


1876 


2, 178. 3 

795.3 

10.7 


1891 


86.5 


1880 


1894 


200.5 


1884 











The quantity imported thus increased by 12,023.9 per cent during 
twenty-three years. 

THE MERCHANT MARINE. 

The development of the merchant marine of Japan has kept pace 
with that of other industries. The following table shows the number 
and tonnage of the steamships owned in Japan during the last fourteen 
years : 



Year. 


Number 
of steam- 
ships. 


Tonnage. 


Year. 


Number 
of steam- 
ships. 


Tonnage. 


1872 


96 
159 
210 
390 

524 


23, 364 
40, 248 
41,215 
45, 350 
81, 066 


1891 


607 
680 
461 
517 


95, 588 
110, 205 
163, 996 
321, 522 


1876 


1893 


1880 


1894 


1883 


1895 


1888 









The rate of increase during twenty-four years has been 538.5 per cent 
in the number and 1,376.1 per cent in the tonnage of steamships. 

INCREASE OF RAILWAYS. 

Eailways have also developed rapidly, as shown in the following 
table : 



Year. 


Mileage 
open for 
traffic. 


Year. 


Mileage 
open for 
traffic. 


1872... 


18 

64 

98 

249 


1887 ... 


593 


1876 


1891 


1 712 


1880 


1894 


2 094 


1884 


1895 


2,220 







The rate of increase was 12,333.3 per cent in twenty-four years and 
375.5 per cent in the last nine years. There being now a railway mania, 
not many years will elapse before the country is covered from end to 
end with a network of iron roads. 



120 



RECIPROCITY STATEMENTS. 



JAPANESE POSTAL STATISTICS AND TELEGRAPH SERVICE. 

The following table shows the increase of postal matter: 



Year. 


Letters, etc. 


Parcels . 


Tear. 


Letters, etc. 


Parcels. 


1872 


2, 510, 656 

36, 106, 866 

74, 590, 182 

1*07, 902, 029 




1888 


164, 594, 650 
249, 199, 154 
370, 314, 072 




1876 




1891 




1880 




1894 


1, 808, 707 


1883 













An increase of 14, 753.5 per cent during twenty- three years is not a 
bad record. 
The following figures relate to the telegraphic service : 



Year. 


Number 
of offices. 


Miles of 
wires, etc. 


Messages. 


1872 


29 
100 
195 
312 
250 
435 
719 


34 
2,214 
4,484 
5,916 
7,581 
9,113 
11, 178 


80, 639 
631, 825 


1876 


1880 


2, 128, 201 


1883 


2, 418, 301 


1888 


2, 885, 513 
4, 674, 341 


1891 


1894 


7, 852, 738 





Thus, during twenty-three years, the rate of increase was 



2,479.3 



per cent in the number of offices, 32,900 per cent in the length of wires, 
and 9,738 per cent in the number of messages transmitted. 

The telephone service was but lately introduced and is still in a state 
of infancy, yet statistics show that it is coming into more and more 
extended use. 



Tear. 


Number of 

registered 

users of 

telephones. 


Miles of 
wire. 


1890 


225 
2,748 


258 


1894 


1,831 







COST OF LABOR IN JAPAN. 



With the growth of industries the cost of labor has gradually risen. 
By way of illustration, the following statistics show the wages of female 
hands employed in cotton mills : 



Tear. 


Average 

wages per 

diem. 


Eate of 
increase. 


Tear. 


Average 

wages per 

diem. 


Eate of 
increase. 


1889 


Sen. 
8.1 
8.2 
8.3 
8.9 


Per cent. 


1893 


Sen. 
9.4 
10.2 
10.9 


Per cent. 
5.6 


1890 


1.2 
3.4 
7.2 


1894 


8.5 


1891 


1895 


6.7 


1892 











A sen is equal to one-half of 1 cent. 
The rate of increase in seven years has been 37 per cent. 
For the Bulletin of the Department of Labor, No. 2, for January, 1896 v 
I furnished a statement in detail concerning the industrial revolution 



RECIPROCITY STATEMENTS. 121 

that is now going on in Japan, which should be read in this connection 
for a better understanding of the commercial situation in that country. 
A very interesting series of reports on the industrial and commercial 
condition of Japan appear in the Consular Reports for May, 1896. 

APPREHENSION OF FINANCIAL TROUBLE IN JAPAN. 

There is a serious apprehension among thoughtful men lest Japan is 
making too rapid progress. That precocious child of modern civiliza- 
tion has developed at such an extraordinary pace that much of its cul- 
ture is veneer. Its education is superficial, and the legislation enacted 
by a Parliament that has been in existence but five years has been so 
abundant, so ambiguous, and so contradictory that it has been found 
necessary to appoint commissions of learned and conservative men to 
revise and codify the statutes of the Empire in order that they may be 
understood and enforced. The industrial revolution has been so rapid 
and radical; the expenditures for public and private improvements 
have been so great; the fever of speculation has run up so high, that 
the capital of the country is not sufficient for the transaction of busi- 
ness, and a reaction must sooner or later occur, which may cause a 
financial panic and retard development until commercial and industrial 
affairs can adjust themselves to their normal conditions. 

There have been grave omens of such disaster during the last few 
months. The excessive production of raw silk, which has been the 
most profitable crop of the country, has already outstripped the demand, 
and recent advices have been received of 30,000 bales thrown back 
upon the commission men for which there is no market. The banks 
have refused to make new advances upon silk, or to renew old loans with- 
out additional security, which the merchants have been unable to fur- 
nish; and the latter have appealed to the Government to advance 
10,000,000 yen, which is equivalent to $5,000,000, to carry them over the 
emergency, which was refused, and now the owners of the silk, who are 
carrying it upon margins, have been compelled to sell at a decided loss 
in order to pay storage and interest charges. Thus the price has been 
forced down from 30 to 35 per cent less than that which ruled at this 
time last year. 

Another and more significant indication of the serious condition of 
affairs was the failure of a recent Government loan. Japan has never 
been compelled to borrow money abroad. She has no foreign debt. 
That the Government was able to arm and equip an army of 300,000 
men and a fleet of 70 vessels and carry on a war upon foreign territory 
for more than two years in Korea, China, and Formosa, without the 
aid of foreign capital, without the slightest depreciation of the national 
currency, and without any interruption of its commerce or industry, 
which actually increased during the time, demonstrates the extraordi- 
nary resources and reserve power of the country. And in February, 
189G, a loan of $10,000,000 at 4 per cent was oversubscribed at par. 
But in April following, when another loan of the same amount under 
similar conditions was offered, but $2,000,000 was taken by local in- 
vestors, and Government securities for the first time were quoted below 
par. The National Bank, with a patriotism which is characteristic of 
Japan, accepted the balance of the bonds, and was authorized to issue 
currency upon them. 

There can never be so serious a panic in Japan as occurred in the 
United States in 1873, or in the Argentine Eepublic twenty years later, 
when the phenomenal advancement of that country collapsed with the 



122 RECIPROCITY STATEMENTS. 

Baring failure. The peculiar conditions will not permit it; but it may 
be expected that the remarkable development of the last five years will 
soon hesitate because of a lack of capital unless the laws that now pro- 
hibit investment of foreign capital are relaxed. 

The great danger in Japan comes from the same causes, however, from 
which the financial panics in both the United States and the Argentine 
Kepublic originated — excessive speculation, the inflation of the paper 
currency, and the withdrawal of specie from circulation. Indeed, so 
excessive has been the spirit of enterprise that new companies have 
been incorporated and existing companies have had their capital in- 
creased by the sum of $591,816,790 daring the last fifteen months, and, 
supposing that these companies should call in only one-third of their 
subscriptions Japan would be greatly crippled for money to transact/its 
business. Another reason for apprehension is that the Japanese peo- 
ple are still amateurs in all lines of commerce and industry, and possess 
a confidence in their own ability which is not justified by experience. 

THE TARIFF OF JAPAN. 

Under a system of treaties which were exacted from/Japan by the 
civilized nations when its ports were forcibly opened tojoommerce, duties 
upon all forms of imported merchandise are limited to 5 per cent ad 
valorem, and have prevailed for more than a quarter of a century, 
although Japan has continually complained of the injustice. The Gov- 
ernment has for years contended for the right to regulate her own reve- 
nues, fix her own tariff, and manage her own custom-houses and ports; 
and the United States has repeatedly expressed its willingness to con- 
cede those rights, but Great Britain has stubbornly declined until last 
year, when new treaties were negotiated with our Government and with 
France, Great Britain, Germany, Bussia, and other countries, in which 
important concessions were made. 

These treaties are nearly uniform, and recognize Japan as a fully 
civilized nation. On and after the 17th day of July, 1899, Japan may 
regulate her own tariff and exercise jurisdiction over all persons resid- 
ing within her territory. She agrees that all her ports and cities and 
towns shall be open to foreign commerce, and that foreigners may come 
and go and enjoy the same treatment as citizens of Japan so long as 
they obey the laws and regulations of the country. 

It will be difficult, however, for the United States to negotiate a 
reciprocity treaty with Japan, for the reason that the favored-nation 
clause appears with unusual breadth in all the treaties. In terms 
Japan agrees to impose no other or higher duties upon the same articles 
imported from any of the most-favored nations. 

THE THREATENED INVASION. 

A great deal has been priuted in the public press about the danger 
of an invasion of the markets of the United States by the Japanese 
which threatens disaster to our domestic industries, and matches, but- 
tons, and bicycles have been mentioned as some of the articles in which 
their competition will be ruinous. The manufacture of matches in 
Japan is very extensive and is increasing rapidly. They are mostly of 
the Swedish kind, which will ignite only upon their own boxes, and are 
sold for almost incredible prices — a dozen boxes for 1 cent. But they 
are made of very soft wood, and the chemical preparations are so imper- 



RECIPROCITY STATEMENTS. 123 

feet that both materials and methods will have to be improved before 
there will be any market for Japanese matches in the United States. 
I have seen a man destroy an entire box of matches without lighting 
one, and so uncertain and imperfect are they that any importer who 
brings them into the United States would destroy his reputation. 

It is also true that bicycles are sold in Japan for $25 in silver, which 
is equivalent to about $13 in gold, but the same kind of a bicycle might 
be made and sold for that price in this country. It is a cheap affair, with 
a light frame and poorly made, which will answer very well for use in 
that country, where the roads are smooth and the people are of small 
stature, but it would be found very poor economy for any person to 
import them into the United States, even at the price named. One 
invoice might be disposed of as novelties, but there would be no future 
demand. 

Up to the close of 1895 there was only one bicycle factory in Japan. 
That was located at Yokohama, employed only three or four men, and 
turned out five or six bicycles a week. They were all made of imported 
material upon stolen patents. The only advantage the manufacturer 
of these machines has over the bicycle manufacturers of this country 
is cheap labor and his ability to carry on business at a profit that would 
not be accepted by any manufacturer in the United States. He pays 
his workmen 20 cents a day, and if he can get a profit of $1 a day out 
of his whole establishment he is perfectly satisfied. 

THE NATURAL MARKETS OF JAPAN. 

There will be no invasion of the United States by the products of 
cheap Japanese labor during the present generation. There is no ques- 
tion that Japan is destined to be one of the great workshops of the 
world, but her manufactured products are not suitable for the refined 
taste of the American people, and aside from her silks and the result 
of her art industries she can offer them very little that they want. She 
will, however, sooner or later deprive our cotton mills of the markets 
they have been enjoying in Asia. Great Britain, Germany, and the 
other continental countries of Europe will suffer more severely than Ave. 
China, Korea, India, Australia, and the East Indies will absorb all the 
merchandise that Japan can manufacture for the next quarter of a cen- 
tury and furnish her natural market. We will continue to take her 
raw and manufactured silk goods and her tea, and if our manufacturers 
will enter into the trade with zeal and enterprise they may be able to 
furnish a vast amount of the raw materials which she will need. 
C It would be a great advantage to the farmers and the millers of the 
United States if the wheat-iiour habit could be introduced into China, 
Japan, and other countries of the East. While flour is our largest item 
of export at present, with the exception of kerosene oil, it is used only 
by foreigners. The natives stick to rice. The exports of flour to China, 
including the British colony of Hongkong, average about 600,000 bar- 
rels a year, valued at $2,000,000. The exports to Japan are about 
75,000 barrels, valued at $200,000. 3 

NUMBER OF FOREIGNERS IN CHINA. 

According to the latest reports of the customs service of China, which 
is under the control of foreigners, and is usually accurate, there are 10,091 



124 



RECIPROCITY STATEMENTS. 



foreign residents within the Empire, and 603 foreign firms doing business 
there. The following is the division according to nationality: 





Firms. 


Residents. 




Firms. 


Residents. 




361 
31 
31 
92 


4,081 

1,325 

875 

812 




9 
34 
45 


805 






669 






1,521 













The cosmopolitan character of the foreign settlements in China was 
illustrated last winter at the city of Tien-Tsin, when an amateur theatrical 
performance was given at the club. In the caste on that occasion were 
2 Americans, 1 Austrian, 1 Dane, 1 Dutchman, 3 Englishmen, 1 Italian, 
1 Spaniard, 2 Germans, 2 Scotchmen, 2 Eussians, 1 Welshman, and a 
gentleman who was born in Brazil of French parents. 

But, as I have said, only-^ he for eign population consume flour. The 
total population of China and Japan and Korea will exceed 450,000,000, 
who do not eat it. 



THE FOREIGN TRADE OF CHINA 

is increasing very rapidly, although not so rapidly as that of Japan. 
It is now more than double what it was ten years ago, In 1885 the 
total foreign trade of China reached $143,765,395. In 1895 it reached 
$314,989,926. Of the total last year Great Britain, as formerly, had 
the lion's share, something more than $215,000,000. Japan came next 
with $32,000,000, and the United States had nearly $25,000,000. This 
does not, however, include our trade with the British colony of Hong- 
kong, which amounted to nearly $5,000,000 more. 

The character of the trade with the United States is very similar to 
that we carry on with Japan. Our imports from China last year 
amounted to $20,505,829, of which $16,958,428 was admitted free, and 
consisted of raw silk and tea, with a little matting, materials for hats 
and bonnets, camphor, and wool. Duties were imposed upon $3,587,401, 
which was chiefly opium, rice, manufactured silk, furs, and sugar. 

Our exports to China amounted to $3,603,840, which were chiefly cot- 
ton cloth and mineral oil. The trade is regular, and has not increased 
or decreased to any degree for several years. 

William E. Curtis. 



APPENDIX D. 



ADULTERATED FOODS EXPORTED TO THE UNITED STATES. 



125 



ADULTERATED FOODS EXPORTED TO THE 
UNITED STATES. 



U. S. Department of Agriculture, 

Office of the Assistant Secretary, 

Washington, J). C, March 24, 1896. 
Dear Sir: Beferring to my promise to forward to you any informa- 
tion the Department may have with regard to the adulteration of food 
products brought into this country from foreign countries, I have the 
honor to send you herewith a copy of a communication from our Divi- 
sion of Chemistry on the subject, which has attached a series of refer- 
ences to foreign publications containing notices of food adulterations, 
preservatives, etc. There is plenty of evidence in foreign literature that 
foods imported into this country are liable to adulterations, especially 
wines, spirits, etc., and canned vegetables and meats. 
I have the honor to be, very respectfully, 

Chas. W. Dabney, Jr., 

Assistant Secretary. 
Hon. A. J. Hopkins, 

House of Representatives, Washington, D. G. 



U. S. Department of Agriculture, 

Division of Chemistry, 

Washington, February 11, 1896. 

Sir : I have taken some time to reply to your letter of the 31st ultimo, 
in order to collect some reliable data. 

I am not informed in respect of methods used by the Treasury 
Department to prevent the importation of adulterated foreign goods 
into this country. I believe a perfunctory inspection of imported foods 
and drinks is made at some of the ports of entry, e. g., New York. 
There is a chemical laboratory connected with the collector's office in 
New York, which formerly was devoted almost exclusively to the 
analysis of imported sugars. I believe that teas are also systematically 
examined, but I do not know whether from a chemical standpoint or 
not. In so far as I know, there are no analyses made to determine the 
purity of sausages and other meats imported from Germany, nor of the 
beers and wines from that country. 

The prevalence of the adulteration of foods and drinks in Germany 
is attested by the evidence of their own efforts to suppress it — efforts 
which must receive the commendation of all lovers of pure foods. It 
is only when German diligence makes an unjust discrimination against 

127 



128 RECIPROCITY STATEMENTS. 

our own products, that we have a just right to protest. To an unpreju- 
diced observer, it often seems that some petty fault, or the presence of 
an almost infinitesimal portion of deleterious matter, is made the basis 
of a proscription which has its real origin in the clamor which is made 
against American competition in the sale of food products. The exclu- 
sion of American pork by reason of its supposed infection with trichi- 
nae, and of American evaporated apples by reason of their supposed 
content of zinc, are instances of the restrictions mentioned. It will not 
be denied that American pork may contain trichinae, but no oftener 
than pork produced in other countries. Evaporated apples manufac- 
tured in this country may also contain zinc, but a most thorough 
investigation shows that it is present in quantities so minute as not to 
endanger health even in the most exaggerated cases. 

I submit herewith some citations transcribed from recognized Ger- 
man authorities, showing the prevalence of objectionable adulterations 
of their own products to an extent fully as great as that on which they 
justify the exclusion of our products. In respect of meats alone, I sub- 
mit fifty instances of the analysis of preparations sold within a short 
time for coloring and preserving. Of these compounds, 27 were found 
to contain boric acid. 

I further submit a list of essences used in artificially flavoring dis- 
tilled spirits 5 in other words, for making artificial whisky and brandy. 
These preparations, it is true, may be used in compliance with the Ger- 
man law by plainly stating on the packages the nature of the compound. 
But what assurance have we that these artificial liqueurs, whiskies, and 
brandies are not exported to this country % 

In Strasburg, in the course of one year, of 710 wines examined, 132 
were condemned as adulterated. Yet this is the center of the Ehine 
wine market, and the percentage of adulterated wines shipped to this 
country may be far greater than that mentioned. In the following year 
20 per cent of the samples of beer analyzed were found to be adulterated, 
and 127 out of 916 samples of wine. It is further stated that the absence 
of any official control of the wine cellars of the Palatinate, permits the 
adulteration of wine to an almost unlimited extent. 

In view of these facts, the President of the United States, under the 
law now in force, would be as fully justified in forbidding the importa- 
tion of German wine, beer, sausages, and cured meats as the German 
authorities are now in restricting the trade in our pork and evaporated 
apples. Only a careful chemical analysis of the suspected articles 
could disclose with convincing certainty the extent of adulteration of 
imported foods and drinks. 

I am, respectfully, H. W. Wiley, 

Chief of Division. 

Hon. Ohas. W. Dabney, 

Assistant Secretary of Agriculture. 



Substances used for coloring and preserving meats in Germany. 

The use of artificial coloring matters and preservatives is quite common in Ger- 
many in the manufacture of sausages and in other forms of preserved meats. It is 
only fair to presume that these bodies are common in the sausages exported from 
Germany to this country. Fifty instances of detection of artificial colors and pre- 
servatives in German meats, as attested by the certificates of German analysts, have 
been collected in the chemical division of the Department of Agriculture. A descrip- 
tion of these colors and preservatives in strictly chemical language would be of 
little interest to the general reader. We will therefore be content with a few state- 



RECIPROCITY STATEMENTS. 129 

merits concerning some of them, holding ourselves ready at any time to give the 
detailed scientific citations. 

1. A meat color and preservative purchased in Hamburg contained a mixture of 
carmine and boric acid, the carmine serving to give the red color to the flesh and the 
boric acid acting as a preservative. 

2. Crystals for preserving meat. This is a substance manufactured in Berlin and 
retailing for a little over 10 cents a pound. It is a mixture consisting of 90 per cent 
of crystallized sulfite of soda and 10 per cent of sulfate of soda (Glauber salts). This 
mixture has no coloring properties, but the sulfite of soda is a strong antiseptic. 

3. Sample No. 3 is a meat preservative in a fluid state, which is retailed at 50 cents 
a quart. It is a mixture of glycerin and solutions of boric acid and sulfite of soda. 
As in the case last mentioned, this substance has no coloring properties, but is used 
solely as a preservative. 

4. This sample consists of a solid meat preservative which retails for 25 cents a 
pound. It consists of a mixture of 75 per cent sulfate of soda (Glauber salts) and 
25 per cent of the bisullite of soda. 

5. This sample is also a solid body, selling for 40 cents a pound. It is directed 
that 2 ounces be used for each 10 pounds of meat. It is composed of 43 per cent of 
saltpeter, 15 per cent each of carbonate of potash and chlorid of potash, and 27 per 
cent of sugar. Saltpeter is not only a good preservative, but it intensifies and 
keeps the red color of meat. The other ingredients noted act simply as preservatives. 

6. This is a substance sold in pound packages and composed of 30 per cent of com- 
mon salt and 70 per cent of boric acid. Of course, there is no objection to the use of 
common salt, as that is a preserving agent which is universally employed. It is the 
boric acid in this mixture which is objectionable. 

7. This material is a liquid, which consists of a solution of the acid sulfite of lime 
saturated with sulfurous acid (fumes of burning sulfur). 

8. This sample is a solid body, which contains 50 per cent of salt, 12 per cent of 
saltpeter, 12 per cent of borax and borate of magnesia, and 26 per cent of boric acid. 

9. This is a solid body, which consists exclusively of borax (biborate of soda). 

10. This is a solid mixture, consisting of common salt, saltpeter, sulfate of soda, 
and gypsum, with cochineal as the coloring matter. 

11. This sample is manufactured by Theodore Hey drich & Co., of Wittenburg. It 
is called "the real American meat preservative," and consists of an aqueous solution 
of commercial sulfite of soda. 

The above are typical samples of the 50 which have been collected. They show 
that aniline and animal coloriug matters, viz, carmine and cochineal, respectively, 
are commonly used for coloring preserved meats. Among the objectionable preserv- 
ing reagents which are employed are found sulfurous acid, the sulfites of soda and 
lime, boric acid and the borates, saltpeter, and glycerin. Among the preservatives 
found which are not objectionable may be mentioned sugar and common salt. 

If food products are to be excluded from Germany on the ground that they may 
contain deleterious substances, it follows with equal reason that the highly colored 
preserved sausages and other meats imported into this country from Germany, and 
which are quite uniformly colored and preserved with the reagents mentioned above, 
could be properly excluded under authority of our laws now in force. 

Essences employed in Germany for tlie manufacture of artificial liqueurs, spirits, and 

other leverages. 

The use of artificial essences to give particular flavors to mixtures of alcohol and 
sugar in the manufacture of artificial liqueurs, spirits, and other beverages is quite 
common in Germany. We have collected a large number of citations giving the 
analyses of these essences and an account of their detection in beverages of an arti- 
ficial nature. It would be unnecessary to enter here into a discussion of the processes 
by which these flavoring matters are produced. It will be sufficient to state that 
the flavor and aroma which are produced in the natural ageing of spirituous liquors 
are due chiefly to the production of aromatic ethers and essential oils by the oxida- 
tion of alcohols contained in the natural product. In order to hasten this process, 
or rather to supersede it, the flavoring matters which are .produced in the natural 
ageing are manufactured synthetically by the chemist, and by the use of these 
flavoring matters with pure alcohol, water, sugar, and sugar colors almost any nat- 
ural beverage produced by natural ageing can be imitated. AVe have citations of 
the analysis and detection of 22 of these artificial flavoring matters in beverages 
manufactured in Germany. In accordance with the German laws, such preparations 
can be made there, provided the nature of the article is plainly marked on the pack- 
age, but there is no method of preventing the exportation of such artificial bever- 
ages under the name and character of the true articles. The sale of such artificial 
beverages is clearly traffic in adulterated goods. The same objection may obtain 
against the importation of beers, although it can not be said that they are in any 

H. Eep. 22G3 9 



130 RECIPROCITY STATEMENTS. 

sense an artificial product. The difficulty, however, of transporting beers long dis- 
tances without their undergoing secondary fermentation has led to the practice of 
adding to the beer or ale some antiseptic substance, such as salicylic acid, which will 
preserve them against the accident mentioned. It is clearly evident, since the addi- 
tion of these antiseptic agents is injurious to hoalLa when beverages are consumed, 
that a beer or ale so treated is adulterated. 

In the case of wines, far more serious discoveries have been made. In a large 
number of examinations, which have been made by German chemists, of commercial 
wines it has been found that a large percentage of them are adulterated. In many 
instances it has been found that the wines were purely artificial. In one instance, 
where 23 wines were condemned as adulterated, 6 of them were found to be purel} T 
artificial, having been made of alchohol, red coloring matter, sugar, and extractive 
material. Of wines which have been made by the fermentation of grape juice many 
are found fortified by the addition of alcohol from other sources, and others are 
shown to have been largely adulterated with gypsum. The occurrence of salicylic 
acid and sulfurous acic as preserving agents is very often detected. 

It is evident from the evidence which has been collected, and of which a resume 
has been given in the preceding paragraphs, that much of the wine and beer and 
other beverages imported into this country from Germany is adulterated. No argu- 
ment is needed to show that shippers will be inclined to send adulterated articles of 
this kind out of a country where inspection in respect to adulteration is rigid into a 
country where they are received without any inspection whatever. 

The evidence submitted is sufficient to warrant a thorough investigation of the 
character of the beverages which are imported into this country from Germany and 
other European nations. 

The subject, however, is of such a purely chemical nature as to render it difficult 
to go into any further details without the use of technical language, which would 
be of little avail for popular purposes. 

Meat colors, preservatives, etc. 

Rosalind Fleisch-Culeur ; made by C. H. Rosa, Hamburg-Uhlenhorst. Flask of 
850 c. c. fluid; 3 marks. Contained 25 grams carmine lake and 20 grams crystallized 
boric acid. (Polenske, Arb. kais. Gesundheitsamt, 1892, 8, 253.) 

Meat Preserve-Krystall : made by E. Dresel, Berlin. Powder retailing atl mark 
per kilo. Consists of 90 per cent crystallized sodium sulfite and 10 per cent sodium 
sulfate. (Polenske, Arb. kais. Gesundheitsamt, 1892, 8, 252.) 

Lakolin (meat preservative) ; same maker. Fluid, 2.5 marks per kilo. Solution 
of glycerin, boric acid, and sodium sulfite. (Ibid.) 

Antisepticum ; made by C. H. Rose, Hamburg-Uhlenhorst. Consists of fine pow- 
dered boric acid. (Ibid.) 

Phlordaritt, neuestes Fleisch-Preserve-Pulver ; made by Magdeburger. Conser- 
vesalzfabrik ( Adolph Dubecke) . Solid mass of 75 per cent sodium sulfate, 25 per cent 
sodium bisulfite; in 400-gram jars (1 mark). Ten grams of substance to be used 
for 5 kilos meat. (Ibid.) 

Carnat; made by L. Ziffer, Berlin. Comes in tin cans containing 590 grams, and 
costing 3 marks ; a teaspoonful to be used for 5 kilos meat. White soluble powder, 
composed of sodium sulfite, sulfate, and chlorid, with 5 per cent sugar. (Polenske, 
Arb. kais. Gesundheitsamt, 1892, 8, 252.) 

Monopol ; made by L. Ziffer, Berlin. Tin cans containing 550 grams coarse powder ; 
price, 2 marks; 30 grams to be used on 5 kilos meat. Composed of 43 per cent salt- 
peter, 15 per cent potassium carbonate, 17 per cent potassium chlorid., and 20 per 
cent sugar. (Ibid.) 

Erhaltungspulver ; made by L. Ziffer, Berlin. Tin cans containing 390 grams 
white powder, consisting of 30 per cent salt and 70 per cent crystallized boric acid. 
(Ibid.) 

Best Australian-New Zealand Meat Preserve; made by L. Ziffer, Berlin. Bottles 
containing 900 grams moist yellow-white powder, consisting of one-third salt and the 
residue a mixture of sodium sulfate and bisulfate; price, 1.4 marks. (Ibid.) 

Preservaline. Schutz gegen Springmaden (maggots). L. Ziffer. Berlin. Fluid, 
containing salt and sodium sulfite. Hams and bacon are to be brushed with the 
liquid. Benzoic acid was also likely present. (Polenske, Arb. kais. Gesundheitsamt, 

1892, 8, 252.) 

Poisonous preserved meat. Toxic symptoms appeared after consumption of 
chopped meat which had been treated with "meat preserve" (calcium acid sulfite). 
This, however, was most likely due to ptomaines. (Mobios, Ztschr. Fleisch- u. 
Milchhygiene, 1892, 3, 63.) 

Australian Salt; made by H. Reich, Magdeburg. Composed of 30 per cent salt, 
25 per cent saltpeter, and 25 per cent sugar. (Venztke and Schorer, D. Fleisch-Ztg., 

1893, 21, Nos. 20, 21, and 24.) 



RECIPROCITY STATEMENTS. 131 

Meat preserve. Solution of calcium acid sulfite, containing 68 grams sulfurous 
acid per liter. (Ibid.) 

Best Australian and New Zealand Meat Preserve ; made by L. Ziffer, Berlin. 23 per 
cent sodium sulfite, 37 sodium sulfate, 40 salt. (Ibid.) 

Excelsior. Fleiscb-Erhaltimgs-Krystall. Isaak Goldberg, Kassel. Contains 85 
per cent of crystallized sodium sulfite and 15 per cent of sodium sulfate. (Venzke 
and Schorer. D. Fleisch-Ztg., 1893, 21, Nos. 20, 21, and 24.) 

Carnat; made by L. Ziffer, Berlin. Contains 43 per cent of salt, 25 of dried 
sodium sulfite, 27 of sodium sulfate, and 5 of sugar. (Ibid.) 

Fleiscli-Conserve-Fluidum. Dr. E. Kublmann, Berlin. Solution of calcium bisul- 
fite. (Ibid.) 

Preservaline. Scbutz gegen Springmaden (maggots). L. Ziffer, Berlin. Solution 
of salt, sodium bisulpbite, and sodium sulphate. (Ibid.) 

Australian Salt 11 ; made by H. Reich, Magdeburg. Equal parts crystallized boric 
acid and salt. (Ibid.) 

1. Starkwirkendes Conservesalz; made by Dr. E. Kublmann, Berlin. Equal parts 
boric acid and salt. (Ibid.) 

Barmenit; made by A. Wassmuth, Barmen. Equal parts of boric acid and salt. 
(Ibid.) 

The Real Australian Meat Preserve; made by Louis Kahn, Hamburg. Aqueous 
solution of acid calcium sulfite. (Venzke and Schorer, D. Fleisch-Ztg., 1893, 21, 
Nos. 20, 21, and 24.) 

Einfaches Conservesalz (rothendes Pokelsalz). Th. Heydrich & Co. Salt, 62 per 
cent: baking soda, 4; Chile saltpeter, 34. (Wittenberg, Ibid.) 

Erhaltungssalz. Dr. H. Oppermann, Bernburg. Salt, 50 per cent; saltpeter, 12 
per cent; borax, 11.5 per cent; magnesium borate, 0.5 per cent; boric acid, 26 per 
cent. (D. Fleisch-Ztg., 1893, 21, No. 38.) 

Erhaltungspulver. Dr. H. Oppermann, Bernburg. Salt, 30 per cent; borax, 32.6 
per cent; magnesium borate, 0.4 per cent; boric acid, 37 per cent. (Ibid.) 

Zweifaches Erhaltungspulver. Dr. H. Oppermann, Bernburg. Salt, 15 per cent; 
borax, 38.8 per cent; magnesium borate, 1.2 per cent; boric acid, 45 per cent. (Ibid.) 

Patentirtes Conservesalz. Hugo Jannasch, Bernburg. Melt a pulverulent mixture 
of boric acid, potassium chlorid, and Chile saltpeter, a further quantity of potassium 
chlorid added to the molten mass, the mixture decomposed with 1.10 per cent sulfuric 
acid, stirred, and the mass quickly cooled. (Vjrsschrft. Chem. Nahr., 1894, 9, 282.) 

Dreifaches Conservesalz; made by Th. Heydrich & Co., Wittenburg. Consists of 
equal parts boric acid and salt. (Venzke and Schorer, D. Fleisch-Ztg., 1893, 21, Nos. 
20,21, and 24.) 

Conservesalz; made in Mannheim. Salt, 56 per cent; boric acid, 44 per cent. 
(Ibid.) 

Boroglycin; made by Ch. Rothkramer & Sohn, Erfurt. Composed of 95 per cent 
crystallized boric acid and 5 per cent sugar. (Ibid.) 

Conservesalz; made by Ch. Rothkramer & Sohn, Erfurt. Same as the Boroglycin. 
(Ibid.) 

Erhaltungspulver; made by L. Ziffer, Berlin. Thirty per cent salt, 1.5 per cent 
sodium sulfate, and 68.5 of boric acid. (Ibid.) 

Sanitat Lake-Erhaltungsflussigkeit; made by M. Starke, Berlin. Mehl; made by 
H. Reich, Magdeburg. These two are to be used together. Both consist of a mix- 
ture of boric acid, gypsum, salt, etc. (Ibid.) 

Dreifaches Conservesalz; made by Robert Kuhlrott, Leinefelde. Composed of 
93.5 per cent crystallized boric acid, 5 per cent saltpeter, and 1.5 sodium sulfate and 
salt. (Venzke and Schorer, D. Fleisch-Ztg., 1893, 21, Nos. 20, 21, and 24.) 

Einfaches Conservesalz; made by Robert Kuhlrott, Leinefelde. Equal parts of 
boric acid and saltpeter. (Ibid.) 

Conservesalz; made by L. Ziffer, Berlin. One-third salt, one-third saltpeter, one- 
third boric acid (crystallized). (Ibid.) 

Patentirtes Conservesalz; made by Hugo Jannasch. Three-fifths borax, two-fifths 
salt. (Ibid.) 

Pokel-Conservesalz ; Dr. E. Kuhlmann, Berlin. Salt, 66 per cent ; 17 per cent borax, 
17 per cent saltpeter. (Ibid.Y 

Dreifaches Conservesalz; rrfade by Conser-vesalz-Fabrik, Stuttgart. Borax, 82 per 
cent; sodium nitrate, 18 per cent. (Ibid.) 

Conservesalz; Oskar Guhardt, Leipzig. Borax, 15 per cent; 82 per cent salt, 0.3 
per cent salicylic acid, 2.7 per cent sodium sulfate and gypsum. (Venzke and 
Schorer, D. Fleisch-Ztg., 1893, 21, Nos. 21, 20, and 24.) 

Australian salt I. H. Reich, Magdeburg. One-half salt, one-quarter borax, one- 
quarter saltpeter. (Ibid.) 

Einfaches Conservesalz; made by Conservesalz-Fabrik, Stuttgart. Salt, 51 per 
cent ; Chile saltpeter, 42 per cent, and borax, 7 per cent. (Ibid.) 



132 RECIPROCITY STATEMENTS. 

Dreifaches Conservesalz ; made by L. A. Neiss, Frankfurt on the Main. Pure borax. 
(Ibid.) 

Frankfurter Conservesalz "Gloria," L. A. Neiss, Frankfurt. Salt, 88 per cent; 
saltpeter, 12 per cent; sodium sulfate, gypsum, and cochineal, 2 per cent. 

The Real American Meat Preserve; made by Th. Heydricn & Co., Wittenburg. 
Aqueous solution of impure sodium sulfite. (Ibid.) 

» Conserveessenz. From Stuttgart. Aqueous solution of acid calcium sulfite. 
(Ibid.) 

Real Australian Meat Preserve. Two per cent salt ; 19 per cent dried sodium sulfite ; 
79 per cent dried sodium sulfate. (Venzke and Schorer, D. Fleisch-Ztg., 1893, 21, 
Nos. 20, 21, and 24.) 

Sozolith, beste concentrirte Fleisch-Preserve. Eighty per cent dried sodium sul- 
fate; 20 dried sodium sulfite. (Ibid.) 

Conservirungsmittel; made by J. Henniger's Nachfolger, Mannheim. Raw sugar. 
(Ibid.) 

Best Australian and New Zealand Meat Preserve. L. Ziffer, Berlin. Solution of 
calcium acid sulfite. (Ibid.) 

Doppelt cone. Sulfit-Natron (Natrium-Bisulfit). L. Ziffer, Berlin. Solution of 
254 grams crystallized sodium bisulfite and 71 grams crystallized sodium sulfate to a 
liter. (Ibid.) 

Meat Preserve Krystall. Dressel, Berlin. Composed of 53 per cent sodium sulfite, 

6 of salt, and 41 of sodium sulfate. (Idid.) 

Essences for the manufacture of liquors. 

Dr. Ed. Polenske publishes the results of his examination and analysis of— 

1. Ludwig Erkmann's rheinsche Cognac-Essenz, Alzen, bei Mainz a. Rh. 

2. Koelling und Schmitt's Cognacessenz, fine Champagne mit Bouquet, Zerbst. 

3. Louis Maul's Cognacgrundstoff, Berlin. 

4. Stephen's Branntweinschserfe, Schwerin. 

5. Eduard Buettner's Branntweinbasis, Leipzig. 

6. Louis Maul's Kornbranntwein-Essenz, Berlin. 

7. Louis Maul's Korngrundstoff, Berlin. 

8. Delvendahl and Kuentzel's Nordha?user Korn-Wurze, Berlin. 

In the succeeding article is also described Delvendahl and Kuentzel's coloring mat- 
ter for red wine, Berlin. 

Of course these preparations can be used in compliance with the food laws if the 
articles made from them are properly designated. They are evidently intended for 
the preparation of artificial liquors, but if sold as such not for adulterated liquors. 

(Arbeiten aus dem kaiserlichen Gesundheitsamt, 1890, Band 6, Heft 2.) 

The following list of essences is a continuation of that given above: 
9. Delvendahl and Kuentzel's Cognac-Essenz, Berlin. 

10. Delvendahl and Kuentzel's Cognac-Fagon, Berlin. 

11. Delvendahl and Kuentzel's Rum-Facon, Berlin. 

12. Delvendahl and Kuentzel's Arrak-Facon, Berlin. 

13. Delvendahl and Kuentzel's Blausaeurefrei-Bittermandeloel, Berlin. 

14. Delvendahl and Kuentzel's Englisch Pfefferruinzoel, Berlin. 

(Arbeiten aus dem kaiserlichen Gesundheitsamt, 1890, Band 6, Heft 3, pp. 518-521.) 
In a later publication the same author describes two more articles of the same 
nature : 

1. A. Kurz's Nordhaeuser-Kornbasis, Wernigerode. 

2. A. F. Koelling's Hoechst koncentrirte Cognac-Essenz, Zerbst. 

(Arbeiten aus dem kaiserlichen Gesundheitsamt, 1893, Band 9, Heft 1, pp. 136-138.) 

Dr. G. Lange, in Jahresbericht des staedtischen Untersuchungsamtes in Hanover, 
calls attention to a number of adulterated liquors. 

Beer und "Bierersatzmittel:" One sample of beer was turbid; another insuffi- 
ciently fermented, and a sample of " Bierersatzmittel" was found to contain caramel. 

Spirits : A sample of cognac was found to be artificial. 

Wine: Twenty-three wines were condemned. Of these, 6 medicinal wines were 
artificial; 10 were gallized and did not come within the requirements of the law; 1 
red wine (intended for diabetes) contained sugar, and 3 French wines were plastered. 

(Rev. intern, fals., 1894, 8, 2; Vtjhr. Chem. Nahr., 1894, 9, 477.) 

Prof. Dr. Kaemmerer, in Berlicht ueber die Thaetigkeit der staedtischen Unter- 
suchungsanstalt fuer Nahrungs- und Genussmittel in Nuernberg waehrend des Jahres 
1893, reported that out of 24 samples of white wine 5 were excessively gallized and 

7 heavily sulfured, and that out of 10 samples of sweet wine 2 were artificial. 
(Vtjhr. Chem. Nahr., 1894, 9, 484.) 

Dr. Carl Amthor, in Bericht ueber die Thaetigkeit des chemischen Laboratoriums 
der kaiserlichen Polizeidirection zu Strassburg in der Zeit vom 1. Jan., 1892, bis 
1. Jan. 1893, reports that of 710 samples of wine examined 132 were condemned. Of 



RECIPROCITY STATEMENTS. 



133 



these the majority were gallized, 2 contained too much sodium chlorid, 7 commercial 
glucose, 3 an excessive amount of acetic acid, and a number were fortified. (Vtjhr. 
Chem. Nahr., 1894, 9, 344.) 

For the next year the same author reports from the same source : 6 samples of beer 
were examined and 4 condemned ; 14 samples of brandy and liquor were examined 
and 5 condemned; 983 samples of wine were examined and 222 condemned. Among 
these were samples of many different methods of adulteration. (Ibid, 1894, 9, 311.) 

The next year, 1894, 3 samples of beer were adulterated of 15 examined; and of 
916 samples of wine, 127 were adulterated, and 5 were confiscated and the dealers 
fined 765 marks and sentenced to two months' imprisonment. The articles state that 
the absence of a cellar control in the Palatinate permits the adulteration of wine 
there to an almost unlimited extent. (Ztschr. Nahr.-Hyg., 1895, 9, 240.) 

Prof. Dr. Th. Dietrich, in Marburg, found one sweet wine to which sugar had been 
added, and three cognacs containing too large an amount of extract. (Vtjhr. Chem. 
Nahr., 1894, 9, 203.) 

Reports from 14 laboratories in Germany show that of the samples examined in 
1891, 20 per cent of the beer, 4.8 per cent of the brandies and liquors, and 20 per cent 
of the wine were adulterated; while in 1892 the adulterated samples included 9.7 
per cent of the beer, 8.8 per cent of the brandies and liquors, and 30.6 per cent of 
the wine. (XII Vers.-Ber. fr. Vereinig. baur. Vertr. angew. Chem., 1893, S. 63. 65 
Vtjhr. Chem. Nahr., 1894, 9, 168.) 

Dr. H. YVeller, in Darmstadt, reports adulterations as follows (Ibid., 1894, 9, 312.) : 



Year. 


Sample. 


Number 
examined. 


Number 
adulter- 
ated. 


Year. 


Sample. 


Number 
examined. 


Number 

adulter 

ated. 


1890 




185 

12 

190 


6 

3 

24 


1892 

1892 




30 
226 


3 


1891... 




Wine 


34 


1891 















In the Berlin Nahrungsmittel-Controlle 20 samples of wine were examined in June 
in 1895. Of these, 6 (ungarische Suessweine (medicinal) were adulterated by the 
addition of sugar and alcohol. (Ztschr. Nahr. Hyg., 1895, 9, 240.) 



Butter "made in Germany." 

When the president of the board of agriculture was speaking at the farmers' din- 
ner, he incidentally referred to some steps which his department has been taking 
with regard to butter adulteration. It is not widely known that customs officers have 
been taking samples of foreign butter at the port of entry, and that these samples have 
been subjected to analysis. In July nearly 300 samples were tested. After a brief dis- 
continuance the examination began again in September, with the result that in five 
weeks 146 samples were analyzed, 50 being found adulterated. The greater percent- 
age was "made in Germany'' — 10 adulterated consignments out of 11. Holland also 
had 2 adulterated samples out of every 3 tested. During the month of November 
the fraud was still going on, 29 samples out of 145 tests being found adulterated. 
Of 13 lots from Germany 11 were not what they were represented to be, and 12 out 
of 16 from Holland contained fat other than that of butter. (From Vijfde Jaarver- 
slag, 1895, p. 33.) 



APPENDIX E. 



RESTRICTIONS ON AMERICAN PRODUCTS BY FOREIGN 
COUNTRIES. 



135 



RESTRICTIONS ON AMERICAN PRODUCTS BY 
FOREIGN COUNTRIES. 



GEBMANY". 



IMPERIAL ORDER PROHIBITING THE IMPORTATION OF CATTLE AND 
FRESH BEEF FROM THE UNITED STATES. 

[No. 111.] Saturday, October 27, 1894. 

The imperial chancellor, on the strength of paragraph 4, page 2, of 
the imperial law of June 23, 1880, concerning protection against and 
suppression of cattle diseases, after the arrival here of two shipments 
of American cattle containing sick animals, and after the certification 
by the imperial health office that the sickness is "Texas fever," has 
ordered the prohibition of the importation from America of living beef 
cattle and fresh meat. On the strength of paragraph 7 1 of the said 
law it is therefore ordered that — 

The importation of living beef cattle and fresh beef from America is 
forbidden. The importation will nevertheless be permitted of such 
shipments as Lave left America before and including the 28th instant. 
The cattle the importation of which, according to the above provision, 
is still to be permitted must, however, be slaughtered at once in' the 
slaughterhouse at this place. 

Offenses against this prohibition will, according to paragragh 66 of 
the imperial law concerning protection against and suppression of cattle 
diseases, be punished with a fine up to 150 marks, or arrest, in so far as 
no greater penalty is prescribed by law. In addition to this punish- 
ment the cattle or fresh meat imported in contravention of this prohi- 
bition will be confiscated, whether the cattle or meat belong to the 
offender or not. 

Given at the session of the senate, Hamburg, October 26, 1894. 

1 Section 7 of the imperial law of June 23, 1880, is as follows : 

"When a contagious disease prevails or breaks out abroad among domestic cattle 
to an extent involving danger to the cattle of this country — 

" 1. The importation of living or slaughtered animals from the country in which 
the disease prevails may be prohibited entirely or as to certain districts, or may be 
subjected to such restrictions as will exclude or diminish the danger of the importa- 
tion (of the disease). 

"2. Communication with animals within the Empire m?;y be subjected to such 
regulations as are adapted to prevent the further spread of the disease, if it has been 
imported. 

"The restrictions as to importation and communication must also be extended, so 
far as necessary, to the importation of raw animal products and of all such articles 
as migbt be the means of transmitting tbe infectious matter. 

" Tbe chancellor of tbe Empire must be immediately notified of the enactment, 
repeal, or modification of any restriction as to importation or communication. 

"The restrictions enacted as to importation or communication must be published 
without delay." 

137 



138 RECIPROCITY STATEMENTS. 

[Translation.] 

Cattle quarantine regulations talcing effect October 1 3 1895. 1 

PROCLAMATION. 

The Council of the Confederacy (Bundesrath), at its session of June 
27, 1895, in view of section 6 and section 7, No. 1, of the laws of June 23, 
1880, and May 1, 1894, for the prevention and suppression of cattle dis- 
eases, adopted the following regulations for the veterinary police treat- 
ment of ruminating animals and swine arriving from abroad by sea for 
importation. 
Berlin, July 11, 1895. 

The Imperial Chancellor. 
By Yon Boetticher. 



REGULATIONS FOR THE VETERINARY-POLICE TREATMENT OF RUMI- 
NATING ANIMALS AND SWINE ARRIVING* FROM ABROAD BY SEA FOR 
IMPORTATION. 

I. Ruminating animals and swine arriving from abroad by sea for 
importation are to be subjected, before they are allowed to be slaugh- 
tered at or outside of the seaport, or admitted to free communication, 
to a quarantine of four weeks in an establishment for that purpose, at 
the expense of the importers. 

The annexed rules for the arrangement and management of the 
quarantine establishments are in force. 

II. Those cattle, sheep, and swine which are admitted to free com- 
munication after having undergone the quarantine are to be subjected, 
at their point of destination, to a further observation for the space of 
five months, which observation, however, shall not restrict their owners 
in the disposal of the animals. 

III. The imperial chancellor is authorized, in the case of ruminants 
and swine from those countries in which the diseases affecting these 
kinds of animals have not been long prevalent, to reduce the quaran- 
tine period to 10 days, either for all or for certain species of animals. 
When such an order is issued for cattle, sheep, or swine, they are 
released from the five months' observation prescribed by No. II. 

IV. The central authorities of that confederated State in whose terri- 
tory the importation first takes place (the border State) are authorized, 
upon agreement with the central authorities of that confederated State 
for which the shipment is intended, to permit the importation of breed- 
ing animals, trained animals, and animals intended for zoological gar- 
dens, parks, or similar establishments, without previous quarantine, 
provided such animals were not shipped with animals subject to quar- 
antine. 

The latter authorities are authorized to adopt measures of super- 
vision at the point of destination, in accordance with the circumstances 
of the case, for animals admitted without quarantine. 

1 These regulations do not affect the prohibitory order of October, 1894, and are not 
therefore applicable to cattle from the United States. 



RECIPROCITY STATEMENTS. 139 

V. These regulations apply only to the importation of ruminants and 
swine from countries toward which more stringent restrictions (prohi- 
bition of importation) have not been adopted. 

VI. These regulations go into force October 1, 1895. 



RULES FOR THE ARRANGEMENT AND MANAGEMENT OF SEA QUAR« 
ANTINE ESTABLISHMENTS FOR FOREIGN CATTLE. 

1. It is left to the discretion of the confederated States either to erect 
and manage the quarantine establishments themselves, or to intrust 
the erection or management to municipalities or private individuals. 

2. The quarantine establishments are to be placed as near as possible 
to the landing places intended for foreign cattle, and which, so far as 
practicable, are to be used only for such cattle. If the establishments 
are not in the immediate neighborhood of the landing places, the cattle 
must be transported to them only by railroad. 

Satisfactory arrangements must be made to prevent domestic cattle 
from visiting the landing places, their neighborhood, and the roads 
leading thence to the quarantine stations, as well as the neighborhood 
of the stations. 

3. The quarantine stations must be inclosed, and must be furnished 
with their own wells or with water pipes. 

The stables must be satisfactorily arranged for the reception and 
care of the cattle to be placed in them, and must permit the separate 
location of the different shipments; they must be built and furnished 
in such a way that they and their contents can be thoroughly disin- 
fected. 

4. The quarantine stations must, as a rule, unless they are provided 
with their own slaughterhouses, be connected with the slaughterhouse 
of the seaport by a line of rails aclairted to railroad cars. 

At stations which have not their own slaughterhouses, and which 
are not connected with the slaughterhouse (of the seaport) by rail, 
tightly closing wagons, from which dung, etc., can not fall out, must 
be provided for the transportation of the cattle to the slaughterhouse. 

The slaughterhouse must be so arranged that the quarantine cattle 
can be kept separate until they are slaughtered. 

5. The police permission to put a quarantine station in operation must 
not be granted until the requirements of the foregoing Nos. 2-4 have 
been complied with. 

The permission to put in operation a station which is not provided 
with its own slaughterhouse, and which is not connected with the 
slaughterhouse (of the seaport) by a line of rails adapted to railroad 
cars, can only be granted exceptionally in the case of special circum- 
stances worthy of consideration. 

6. When, in landing cattle, means of transportation (boats, etc.) are 
employed which do not belong to the vessel bringing the cattle, they, 
as well as the landing bridge, the landing place, and the road leading 
to the quarantine station, must be cleaned after the landing, and where 
a case of disease is discovered, they must be disinfected. 

Dung and refuse must not be landed from the vessels bringing cattle 
without special permission of the police, and must be destroyed or 
disinfected immediately after the landing, under the supervision of the 
police. 



140 RECIPROCITY STATEMENTS. 

Dung and refuse can be removed from the quarantine stations only- 
after they have been disinfected under the supervision of the police. 

7. The cattle placed in a quarantine station must be examined daily 
by an official veterinary surgeon. Such veterinary surgeon must not 
accept any compensation from private individuals (cattle owners, 
agents, owners of stations) for this or any other official work of his. 

The State, however, which pays the veterinary surgeons appointed 
to the veterinary service at the quarantine stations, or which compen- 
sates them for their labor, is authorized to require of the parties inter- 
ested fees for the veterinary supervision, which fees are to be so much 
for each head of cattle. 

8. When a contagious cattle disease is discovered among the cattle 
at a quarantine station the station must be immediately closed to fur- 
ther admission, and all the cattle must be slaughtered, under the super- 
vision of the police, in the slaughterhouse of the station or in the 
slaughterhouse of the seaport, to which the animals must be trans- 
ported in railroad cars or accompanied by the police in tightly closing 
wagons (No. 4, paragraph 2). 

The station must be completely disinfected, under the supervision of 
an official veterinary surgeon, and must not be reopened until such 
disinfection has been completed. 

9. Such rules must be issued with regard to persons employed in the 
quarantine stations and those frequenting them as are adapted to pre- 
vent the indirect transmission of infectious matter. 



ADMISSION OF AMERICAN HOG PRODUCTS. 

Mr. Jackson to Mr. Olney. 

IsTo. 326.] Embassy of the United States, 

Berlin, August 3, 1895. 
Sir: Eespectfully referring to the embassy's dispatch No. 230, of 
March 21, 1895, 1 have the honor to inform you that in yesterday's issue 
(No. 154) of the official Berliner Gorrespondenz attention was called 
to the American regulations of February 7 last regarding the inspec- 
tion of meat intended for export, copies of which had been transmitted 
to the foreign office by the embassy in March last. After showing 
what these regulations are, the article goes on to say that " hereafter, 
in consequence of them, in accordance with the imperial order of Sep- 
tember 3, 1891, 1 and of the regulations of February 7, 1895, referred 

1 Imperial decree of September 3, 1891, is as follows: ■ 

We, William, by the grace of God German Emperor, King of Prussia, etc., decree, 
in the name of the Empire, the assent of the Bundesrath having been obtained, what 
follows : 

Section 1. The decree respecting the prohibition of the importation of swine, 
swine's flesh, and sausages of American origin of March 6, 1883 (Imperial Law 
Gazette, page 31), ceases to be of force for living swine, as well as for such products 
as are provided with an official certificate stating the flesh has in the land of origin 
been examined pursuant to the rules in force there and has been found free from 
qualities injurious to health. 

Sec. 2. The chancellor of the Empire is empowered to adopt appropriate measures 
for the control of the character of the swine flesh imported from America. 

Sec. 3. This decree enters into force on the day of its publication. 

In testimony whereof our own proper signature and the imperial seal are hereto 
affixed. 

Done at Castle Schwarzman the 3d of September, 1891. 

[l. s.] William. 

Von Caprivi. 



RECIPROCITY STATEMENTS. 141 

to, bog products and sausages of American origin will be allowed to be 
imported into the Empire only when the shipments are accompanied by 
the designated special certificates." 

I have, etc., John B. Jackson. 



FBANCE. 



MINISTEBIAL ORDER OF FEBRUARY 24, 1895, PROHIBITING THE IM- 
PORTATION OF CATTLE FROM THE UNITED STATES. 

[From the Journal Officiel de la Eepublique Francaise, February 25, 1895, p. 1074.] 

The Minister of Agriculture: 

Pursuant to the law of July 21, 1881, on the sanitary police regula- 
tions regarding animals and the decree of June 22, 1882, relating to the 
regulations for the public administration for the observance of the same; 

In view that there are many contagious diseases which do not exist 
in France, but prevail among the cattle in the United States of America, 
cases having been found among animals imported from that country 
into Europe, it is only reasonable that measures be taken to prevent 
the introduction of these diseases into our territory, and having the 
opinion of the consultative committee on epizootics and on the report of 
the counsellor of state, director of agriculture — 

Resolved : 

Article 1. The importation into France and the transit of cattle 
coming from the United States of America over our land and sea fron- 
tiers is interdicted until otherwise ordered. 

However, cattle sent from the United States before February 24, 
1895, shall be admitted, providing they be landed under the conditions 
prescribed by law for the admission of foreign cattle. 

Art. 2. Prefects of departments are charged, each as it concerns 
him, with the execution of this decision. 

Done at Paris, February 24, 1895. 

Gadaud. 



BELGIUM. 



MINISTERIAL ORDER OF DECEMBER 29, 1894, PROHIBITING THE IMPOR- 
TATION OF CATTLE FROM THE UNITED STATES. 

[Translation.] 

MINISTRY OF AGRICULTURE, INDUSTRY, LABOR, AND PUBLIC WORKS. 

Bovine animals coming from the United States of America. — Importation 

prohibited. 

The Minister of Agriculture, Industry, Labor, and Public 

Works : 

Considering the law of the 30th of December, 1882, on the sanitary 
police of domestic animals, as well as the general administration reg- 
ulation of the 20th of September, 1883, adopted in execution of this law; 

Considering again the ministerial order of the 25th of August, 1894, 
subjecting to a quarantine of forty-five days animals of the bovine spe- 
cies shipped from the United States of America, contagious pleuro- 
pneumonia having been discovered among animals of this origin; 



142 RECIPROCITY STATEMENTS. 

Considering that the same contagious affection was discovered on 
the 25th of December, 1894, in two animals shipped from the aforesaid 
country, and disembarked at Antwerp on the 17th day of the same 
month ; 

Considering the advice of the veterinary inspection service, 

orders : 

Article first. The importation and the transit of animals of the 
bovine species coming from the United States of America are inter- 
dicted until ulterior disposition. 

The direct transit of these animals can be made by railway only and 
in sealed wagons, and without being unloaded en route. 

Article second. By exceptional measure animals of the origin 
indicated in the preceding article in course of shipment before the 2d 
day of January, 1895, may be disembarked at Antwerp, under the con- 
dition of being subjected in the port of that city to a quarantine of 
forty- five days at least, or may be directed toward a public slaughter- 
house, to be there butchered in the delay provided for by the regulation 
dispositions. 

Article third. The order above referred to of the 7th of December, 
1894, 1 is repealed. 

Brussels, December 29, 1894. 

Leon de Bruyn. 



DEKMABK. 



DECREE REGARDING THE PROHIBITION OF THE IMPORTATION OF 
LIVE CATTLE AND FRESH MEATS OF THE SAME FROM AMERICA. 

[Translation.] 

With reference to the act of April 14, 1893, No. 14, 2 regarding con- 
tagious diseases among domestic animals, in order to prevent the impor- 
tation of Texas fever, which is prevalent in America, it is hereby 
prohibited to import into this country from the continent named any 
live cattle or fresh meats of the same. 

This decree does not apply to meats packed in hermetically sealed 
cans. 

The decree of February 14, 1879, prohibiting the importation of live 
cattle from the United States of America is hereby abrogated. 

These regulations to take effect at once. 

Which is hereby proclaimed for the information and guidance of all 
concerned. 

Department of the interior, November 19, 1894. 

HORRING. 

1 This date here given should evidently be August 25, 1894. 

2 Section 14 of the act of April 14, 1893, translated, is as follows : 

"When there is reason to believe that infectious disease has broken out among 
domestic animals in a foreign country the minister of interior may prohibit the 
importation from said country of the class of animals infected, and of raw commer- 
cial products of same — for instance, hair, hides, tallow, and meat — as well as any 
other animals or articles which might carry the infection. 

"When the disease breaks out in this country the minister of interior may either 
absolutely prohibit the carrying away from the infected districts or infected part of 
same any animal of the infected class, as well as of other classes, and articles, by 
which the disease may be introduced to other districts or places; or he may create 
certain conditions to be complied with — for instance, the procuring of a bill of 
health — all for the purpose of arresting and preventing the spread of the disease." 



RECIPROCITY STATEMENTS. 143 



DECREE REGARDING THE IMPORTATION OF PORK AND OTHER RAW 
PRODUCTS OF SWINE FROM THE UNITED STATES OF AMERICA. 

[Translation.] 

The decree of the department of the interior of March 10, 1888, pro- 
hibiting the importation into this country from the United States of 
America of pork and other raw products of swine, including hog blad- 
ders and unrefined pork fat (steam lard), is hereby abrogated so far as 
said products are concerned, provided such products are accompanied 
by authentic certificates that they have been inspected prior to ship- 
ment from the United States in accordance with the laws of that coun- 
try, and by such inspection found to be untainted, sound, and fit for 
human food. • 

These regulations to take effect at once. 

Which is hereby proclaimed for the information and guidance of all 
concerned. 

Department of the interior, September 8, 1891. 

INGERSLEV. 



APPENDIX F. 



REPLIES OF COMMERCIAL AND INDUSTRIAL ORGANIZATIONS 

TO INQUIRIES FROM THE COMMITTEE ON 

WAYS AND MEANS. 



H. Kep. 2263 10 145 



COMMERCIAL AND INDUSTRIAL ORGANI- 
ZATIONS. 



CIRCULAR OF INQUIRY. 

Subcommittee on Reciprocity and Commercial Treaties. 

Albert J. Hopkins, Chairman. 

Jonathan P. Dolliver, James A. Tawney, 

Benton McMillin, John L. McLaurin. 

William E. Curtis, Special Agent. 

gommtttee on ways and means, 

House of Representatives, 
Washington, D. C., March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties desire an 
expression of the views and opinions of the commercial and industrial 
organizations of the United States upon the following points, namely: 
First. Was the effect of the reciprocity arrangements negotiated by 
the Government with certain foreign nations under the authority of the 
tariff act of 1890 favorable or unfavorable to the foreign commerce of 
the United States? 
Second. What was the effect of their repeal by the tariff act of 1894? 
Third. Is it expedient and advisable to apply the reciprocity princi- 
ple to future tariff legislation, and to enact a general law authorizing 
the President to negotiate reciprocity treaties with foreign nations, so 
far as possible? 

Fourth. What can be accomplished by diplomatic negotiations in 
extending the export trade of the United States? 

If you will present these subjects to the members of your organiza- 
tion, and request them at their early convenience to take some formal 
action thereon, we shall be greatly obliged. 
I am, sir, your obedient servant, 

A. J. Hopkins, 
Chairman Subcommittee on Reciprocity and Commercial Treaties. 



REPLIES. 

The National Board of Trade. 

January 28, 1896. 
Whereas under the reciprocal trade relations between the United 
States and the Spanish- American States and Colonies under treaties 
existing prior to August, 1894, very large interchanges of exports and 
imports, including both agricultural productions and manufactures, 
were established j and 

147 



148 RECIPROCITY STATEMENTS. 

Whereas the abrogation of these treaties by legislation of Congress 
lias been followed by very material decrease in such business; and 

Whereas the States and Colonies are increasing in wealth and com- 
mercial importance, and should be knit as closely as possible to the 
United States by bonds of commercial unity as well as by our moral 
support against European aggression and injustice; and 

Whereas the markets in these countries represent in a sense a coast- 
wise trade which should be made and kept our own against any compe- 
tition from any quarter whatever, but which, unless invited and secured 
by a renewal of reciprocal arrangements, must inevitably fall into other 
hands; and 

Whereas both experience and reason show the great benefit in the 
past and the inevitable immensely greater benefit in the future, both 
to our agricultural interests and to our manufactures and shipping, 
which our former reciprocal trade arrangements established and will 
guarantee : 

Be it resolved, That the National Board of Trade urgently demands 
of Congress the enactment of such legislation as will reestablish and 
secure our former reciprocal trade relations between the United States 
and Mexico, the Central and South American countries, and the Spanish- 
American Colonies. 



Merchants 1 Exchange of St. Louis. 

St. Louis, March 19, 1896. 

Dear Sir: Acknowledging receipt of your circular letter of March 
4, in reference to proposed legislation relating to reciprocity arrange- 
ments and commercial treaties and propounding certain inquiries in 
relation thereto, the undersigned take pleasure in behalf of the board 
of directors of the Merchants' Exchange of St. Louis in replying 
thereto as follows: 

Eeplying to interrogatory first: The effect of reciprocity treaties 
negotiated by the Government under the tariff act of 1890 was most 
favorable to the trade of St. Louis, permitting the exportation to the 
Latin States of increased quantities of flour, grain, meats, lard, agri- 
cultural implements, and other manufactures. 

Eeplying to interrogatory second: The effect of the repeal was to 
greatly diminish, and in some instances to absolutely prohibit, ship- 
ments to these countries. 

Replying to interrogatory third: In the judgment of this board the 
reen acting of a reciprocity law authorizing the President to negotiate 
treaties with foreign nations, and especially with the Latin American 
States, would be of immense advantage and result in the extension of 
trade relations to an equal or greater extent than existed at the time of 
the repeal of the reciprocity act. 

Replying to interrogatory fourth : Diplomatic negotiations with for- 
eign countries would serve to make known the advantages of this 
country as a source of supply of breadstuff's, provisions, and manufac- 
tures, and many other articles of which this country has a surplus, and 
also bring to the knowledge of our people the markets in which the 
articles needed here can be obtained at best advantage. 
Respectfully, 

C. H. Spencer, President. 
Geo. H. Morgan, Secretary. 

Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



RECIPROCITY STATEMENTS. 149 

The Cleveland Chamber of Commerce. 

March 17, 1896. 

Dear Sir: Your favor of the 4th instant has been duly considered 
by the manufacturers' board of this chamber, and I have the honor to 
advise you that the folio wing responses to the questions contained therein 
represent the sentiment of that body: 

First. The reciprocity arrangements negotiated by the Government 
with certain foreign nations under the authority of the tariff act of 1890 
were favorable to the foreign commerce of the United States. 

Second. Their repeal in 1891 was a decided detriment to the foreign 
trade of this country. 

Third. This question, for greater convenience in replying, has been 
divided into two sections, as follows : 

(a) Is it expedient and advisable to apply the reciprocity principle to 
future tariff legislation f Yes. 

(b) Is it expedient and advisable to enact a general law authorizing 
the President to negotiate reciprocity treaties with foreign nations so 
far as possible? It would seem desirable to have such treaties made 
subject to the approval of the Senate. 

Fourth. The various consuls might study and report regularly upon 
the opportunities in and requirements of the markets of their respec- 
tive consulates. This information, compiled and disseminated by the 
proper Department at Washington, would be of great service to the 
manufacturers of the United States. 
Respectfully, 

Ryerson Ritchie, Secretary. 
Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



Chamber of Commerce, Milwaukee. 

March 17, 1896. 

Dear Sir: I have the honor to acknowledge the receipt of your cir- 
cular letter dated the 4th instant, asking for the views and opinions of 
this body relating to legislation on reciprocity arrangements and com- 
mercial treaties with certain foreign nations. 

The board of directors of this chamber, comprising about 600 mem- 
bers, is its deliberative body, and as such has already given the subject 
of your letter careful consideration, and expressed itself unanimously 
in favor of the renewal of the reciprocity arrangements and commercial 
treaties negotiated by the Government with foreign nations under 
authority of the tariff act of 1890, as embodied (in part at least) in the 
pending House bill 3212. The action of our board on this subject was 
conveyed to the Senators and Representatives of Wisconsin in Congress 
under date of the 13th instant. The members of our directory are 
representative business men, and among them prominent members of 
the two great political parties. There will not be another meeting of 
the board at which formal action could be taken in response to your 
inquiries before the middle of next month, but I think the action 
already taken will be sufficient to show you the sentiments of this 
body on the subject. 

Yours, respectfully, W. J. Lang-son, 

Secretary. 

Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



150 RECIPROCITY STATEMENTS. 

Cincinnati Chamber of Commerce and Merchants' Exchange. 

Cincinnati, March 16, 1896. 
Dear Sir: The Cincinnati Chamber of Commerce having been re- 
quested to indorse the bill introduced in Congress by Hon. W. R. Kerr, 
of Ohio, known as H. R. 3212, designated as a bill "to secure a better 
foreign market for grain and the products of grain and other agricult- 
ural products of the United States, and for other purposes," referred the 
question to a special committee, whose report was submitted to the board 
of directors on March 3, and unanimously adopted. The report is here- 
with submitted, omitting the introductory reference to the specific pro- 
visions of the bill in detail. In accordance with the action of the board 
of directors, you are respectfully invited to favorably consider the ques- 
tions thus presented. 

Yery respectfully, Maurice J. Freiberg, 

President. 
Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



ACTION OF THE CINCINNATI CHAMBER OF COMMERCE. 

Were the Chamber of Commerce to act as requested, in indorsing the 
provisions of the bill mentioned (H. R. 3212), it would mean an unequiv- 
ocal indorsement of the principle of retaliation in international commer- 
cial intercourse, a principle which has many adherents, but which is 
believed to be of questionable policy, susceptible of being regarded as 
lacking that sense of dignity which a great government should at all 
times maintain in its relations to other countries. Therefore, in the 
opinion of your committee, it would not be wise to indorse the measure 
under consideration. Your committee, however, offer the following as 
an expression upon the subject entertained: 

Whereas the principle of reciprocity between countries having ex- 
changeable products is commendable in the highest degree, and should 
be fostered to the end of promoting the interests of all concerned: 
Therefore, 

Resolved, That it is the manifest obligation of the Government of the 
United States, whenever it is shown that any foreign country imposes 
an unequal, unreasonable, or discriminating duty or policy with refer- 
ence to the products of the United States, to vigorously pursue an effort 
to secure through honorable means a proper understanding upon such 
questions, by which the products of the United States shall be allowed 
to enter such country without discrimination and upon a truly reciprocal 
basis. 

Resolved, That this action by the Cincinnati Chamber of Commerce 
be communicated to the members of both Houses of Congress, and that 
they are hereby memorialized to give due consideration to the impor- 
tance of the questions involved in their bearing upon the maintenance 
and growth of the export trade for the products of the United States 
and the industrial interests of our country. 

C. B. Murray, 
J. Parker Gale, 
F. W. Foulds, 

Committee. 



RECIPROCITY STATEMENTS. 151 

Sioux City Commercial Association, 

Sioux City, Iowa, March 16, 1896. 

Sir: Tour circular of the 4th instant is at hand. So far as it has 
been possible to ascertain the sentiment of members of this association 
on the subject of your inquiry it is generally as follows: 

First. The reciprocity arrangements negotiated by the Government 
under act of 1890 apparently had a stimulating effect upon our com- 
merce along many lines, and particularly with those South American 
countries that accepted the theory and assisted in carrying out the 
idea. 

Second. The repeal of the reciprocity feature in the act of 1894 has, 
in the judgment of many business men of the country, been damaging. 
The reciprocity clause was the expression of a desire on the part of the 
United States to sustain more intimate business relations with other 
countries, and its repeal is subject to the interpretation of a desire for 
isolation. 

Third. It would certainly seem advisable for this country to do every- 
thing in its power to strengthen commercial relations with all countries 
and to facilitate by judicious legislation the interchange of products. 
It is probable that the power to enter into reciprocal treaties should be 
vested in the President under such general directions as the Congress 
may deem wise. 

Fourth. It is quite difficult to say just what diplomatic negotiations 
may accomplish in extending our export trade. Much has been done 
in the past, and without doubt, if the authority is given them and the 
obligation to act is made incumbent, our ministers and consuls could do 
much to aid in this extension. We should be able to send our meats 
and breadstuffs into all countries which do not produce them as cheaply 
as we do, and it would seem that through the Department of the Secre- 
tary of State much might be done to forward this important work. 
Tours, very truly, 

Jas. Y. Mahoney, Commissioner. 
A. W. Erwin, President. 

Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



The Millers 1 National Association of the United States. 

Milwaukee, Wis., March 16, 1896. 

Sir : In reply to your communication of the 4th instant, beg to say 
the membership of the Millers' National Association are unanimous 
in their earnest desire for national legislation which may establish 
reciprocity relations with foreign countries. 

In reply to the several questions which you ask, I will respond 
directly and briefly: 

First. The effect of the reciprocity arrangements with certain foreign 
nations, under authority of the tariff act of 1890, proved highly favor- 
able, as is shown by the statistics bearing upon this subject, which have 
already been placed before your committee. The exports of American 
breadstuffs to South American countries prior to the enactment of that 
law were, in 1885, reported as $10,399,290. In 1891 an increase was 
shown of $4,071,425 for that one year. 

Second. The repeal of that act by the tariff of 1894 proved a serious 



152 RECIPROCITY STATEMENTS. 

setback for this trade, as is demonstrated, also, by statistics. The 
exports of our flour alone to South American countries, which showed a 
gradual increase from 1891 to 1894 from $2,250,756 to $3,253,176, dropped 
off in one year (from 1894 to 1895) to $2,726,558. 

Third. It is the firm and unanimous conviction of all flour manufac- 
turers in this country that the restoration of the reciprocity principle to 
future tariff legislation is not only expedient and advisable, but that 
it is an absolute necessity to the future prosperity of flour milling in 
the United States — an industry representing an investment of over 
$200,000,000 and giving employment to thousands of men. 

The milling capacity of this country has been gradually increasing to 
a point so far in excess of the requirements for home consumption of our 
product, and by virtue of the promising conditions existing until the 
tariff legislation of 1894, that an outlet in the way of a strong export 
trade is now an absolute necessity. If such outlet is hampered or made 
impossible, disaster and failure must result, and our milling plants 
must continue to close down and go out of business. 

Fourth. We are convinced that through diplomatic negotiations re- 
ciprocal relations existing under the tariff legislation of 1890 can be 
restored, and, if restored, we believe that we may regain the export 
trade which former experience has taught us may be obtained and 
cultivated. We are sustained in this belief by assurances received 
from foreign countries that they will gladly purchase our flour, provided 
tariff conditions will permit them to do so. 
Eespectfully, 

Frank Barry, Secretary. 

Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties, 



Michigan State Millers 1 Association, 

Lansing, Mich., March 20, 1896. 

Dear Sir: The executive committee of this association has the 
honor of submitting to you the following facts : 

Believing that reciprocal trade relations between the United States 
and the several European and South American countries are just and 
equitable and greatly to the benefit of the flouring industry of this 
country, the millers of Michigan, almost to a man, favor the so-called 
policy of reciprocity. 

In behalf of these manufacturers, this executive committee petitions 
your honorable body, the House of Eepresentatives, to pass the Kerr 
bill or some other effective reciprocity measure. 

For the executive committee : 

J. J. Hanshue, Secretary. 

Hon. Albert J. Hopkins, M. 0., 

Washington, D. 0. 



The Manufacturers' 9 Association of Kings and Queens Counties, 

Brooklyn, N. Y., March 18, 1896. 
Hear Sir : This association begs to acknowledge the receipt of your 
circular letter under date of 4th instant, and in reply thereto it wishes 



RECIPROCITY STATEMENTS. 153 

to be placed on record in favor of the reestablisliment of treaties of reci- 
procity, giving as its reasons therefor the past history of our country 
and its present requirements. 

Very truly yours, James T. Hoile, 

Secretary. 
Hon. Albert J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



The Young Men's Business League. 

Meridian, Miss., March 20, 1896. 

Dear Sir: Beplying to your letter of March 4, we beg to say we 
have talked with the leading members of our organization and find 
them of the opinion : 

First. The effect of the reciprocity arrangements negotiated by the 
Government with certain foreign nations under the authority of the 
tariff act of 1890 was favorable to the foreign commerce of the United 
States. 

Second. The effect of their repeal by the act of 1894 was disastrous 
to the United States. 

Third. We believe it expedient and advisable to apply the reciproc- 
ity principle to future tariff legislation, and to enact a general law 
authorizing the President to negotiate reciprocity treaties with foreign 
nations as far as practicable. 

Fourth. We believe that foreign nations give a bounty to sugar pro- 
ducers; that the tariff' duties on sugars from such countries should be 
increased by our country. 

Yours, very respectfully, 0. W. Eobinson, 

President. 

Mr. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



Crystal Falls (Mich.) Business Men's Association. 

Crystal Falls, Mich., March 20, 1896. 

Dear Sir : The Business Men's Association of Michigan most respect- 
fully submit their answers to the subjoined questions as follows: 

First. Was the effect of the reciprocity arrangements negotiated by 
the Government with certain foreign nations under the authority of 
the tariff act of 1890 favorable or unfavorable to the foreign commerce 
of the United States? 

It was most favorable. 

Second. What was the effect of their repeal by the tariff act of 1894? 

Disastrous and ruinous. 

Third. Is it expedient and advisable to apply the reciprocity principle 
to future tariff legistation and to enact a general law authorizing the 
President to negotiate reciprocity treaties with foreign nations, so far 
as possible? 

Most assuredly it is. 



154 RECIPROCITY STATEMENTS. 

What can be accomplished by diplomatic negotiation in extending 
the export trade of the United States ? 

It might gain great prosperity to the United States by arranging 
reciprocity treaties. 

Yery respectfully, A. Lustfield, 

Secretary. 
Hon. A. J. Hopkins, 

Washington, D. 0* 






Northampton Board of Trade. 

Northampton, Mass., March 21, 1896. 

At a meeting of the Northampton Board of Trade held to-day, the 
foregoing communication having been placed before it, it was unani- 
mously resolved — 

First. We believe that the reciprocity arrangements made by virtue 
of the authority of the tariff act of 1890 were favorable to the foreign 
commerce of the United States and that their repeal by the act of 1894 
was injurious. 

Second. We believe that it is expedient and advisable to apply the 
reciprocity principle to future tariff legislation and to enact a general 
law authorizing the President to negotiate reciprocity treaties with 
foreign nations so far as possible. 

Third. We believe that a carefully selected and trained diplomatic 
and consular force can do a great deal toward extending our foreign 
commerce. 

Attest: J. Arthur Wainwright, 

Secretary. 



The National Live Stock Exchange. 

March 25, 1896. 

Dear Sir : I beg leave to inform you that I presented your favor of 
the 4th instant, regarding reciprocity, to the executive committee of this 
exchange for their consideration, and they now direct me to make the 
following answers to the questions submitted: 

First. The effect of the reciprocity act of 1890 was very favorable to 
the foreign commerce of the United States. Whether or not the tariff' 
act connected with it at that time was any particular benefit is a 
question. 

Second. The repeal act of 1894 had a demoralizing effect on our live 
stock and meat products in certain foreign countries, excluding entirely 
the importation into those countries of this class of commerce. 

Third. Would think it advisable to separate reciprocity from tariff 
legislation and enact reciprocity irrespective of any tariff legislation. 
Would advocate the enactment of a general law authorizing the Presi- 
dent to negotiate reciprocity treaties with foreign nations. 

Fourth. As we understand the diplomatic system and under existing 
circumstances do not see where anything can be accomplished, but with 
reciprocity laws in force, as hereinbefore indicated, latitude would be 
afforded the Executive and our foreign diplomatic corps to negotiate a 
system of reciprocal treaties, which would place our foreign commercial 
interests on a par with, if not greater than, that of any foreign country. 



RECIPROCITY STATEMENTS. 155 

Keciprocity is always favorable to promotion of tlie foreign commerce 
of the United States, and from our standpoint is the kind of legislation 
needed to increase our foreign commercial relations, and the legislator 
who advocates reciprocity is entitled to all the public honors that can 
be bestowed by the producers throughout the United States. 
Yery respectfully, 

O. W. Baker, Secretary. 
Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



St. Louis Live Stock Exchange. 

March 27, 1896. 

Dear Sir: Your circular letter of the 4th instant, addressed to me 
as president of the St. Louis Live Stock Exchange, was duly received 
and submitted to our directory, who direct me to reply to same, as 
follows : 

Inasmuch as our organization has for its sole purpose the fostering 
and advancement of the great live stock industry of the United States, 
we do not deem it proper or expedient for us to enter into a discussion 
of the general policy of reciprocity, except so far as it affects the 
interests we represent. 

1. We believe that the reciprocal trade arrangements entered into by 
our Government with the countries of continental Europe under and 
by authority of the so-called McKinley bill, enacted in 1890, aided very 
materially in extending and enlarging the markets for our surplus live 
cattle and meat products, and contributed in no small degree to the 
improvement of the great live stock industry of our country. 

2. The effect of the rej)eal of the tariff act of 1890, with its provisions 
for reciprocity, by the tarifl act of 1894 — the Gorman- Wilson bill — has, 
in our judgment, absolutely deprived the farmers and stock raisers of 
this country of any foreign market for live cattle or meat products in 
continental Europe. 

It is true Germany, France, Belgium, and Switzerland have not 
admitted that their action in prohibiting importation of our live stock 
and meats was induced by the abrogation of reciprocal arrangements, 
but the fact remains that following the repeal of reciprocity pro- 
hibitive regulations were by them promptly and vigorously enforced, 
and the reasons given — viz, unhealthy and diseased condition of our 
cattle and meat products — are notoriously untrue and capable of easy 
refutation. Under the operation of reciprocity our exports of live cattle 
and dressed beef averaged about 25,000 head per week to England and 
continental Europe, while quickly following the repeal of reciprocity 
and the closing of markets of Europe, with the single exception of 
Great Britain, our exports declined to about 8,000 head per week. 

3. If by vesting in the President of the United States the authority 
to negotiate reciprocity treaties with foreign nations the stock raisers 
of this country can have restored to them, in whole or part, the markets 
from which they have been excluded and can have other markets opened 
to them, we say, "By all means give the President this power." 

4. Diplomatic agents of this Government should be able to do much 
to extend our foreign trade, particularly our consuls, but we believe 
greater care should be exercised in the selection of our consular agents. 
They should be chosen by reason of their fitness for the position they 



156 RECIPROCITY STATEMENTS. 

are to fill; their pay should be sufficient to attract young men of brains 
and ambition, and their tenure of office should depend solely on the 
degree of efficiency with which they perform their duties. 

We sincerely trust that the intelligence and patriotism of our Sena- 
tors and Eepresentatives in Congress may find their proper expression 
in the prompt enactment of laws for the relief of the business interests 
of the country. 

Tours, very truly, W. B. Stickney, President. 



Committee on Industrial Extension, Orwigsburg, Pa. 

March 23, 1896. 
Sir : Answering your circular letter of inquiry of date the 4th instant, 
our committee asks me to say: 

1. Judging by comparison, the effect of the reciprocity arrangements 
negotiated under the tariff act of 1890 was more than simply favorable 
to the foreign commerce of the United States. 

It is submitted that the wisdom which suggested, and as far as then 
possible procured, the reciprocity arrangements of 1890-94 was worthy 
of true American prevision, and the infant attempts already presaged the 
healthy possibilities of a purely American commercial enterprise. 

2. The repeal of the reciprocity arrangements by the tariff act of 
1894 had a most generally depressing effect de facto, and the abandon- 
ment thereby of all present hope of the extension of these beneficial 
negotiations was so palpably a great blunder that years of prosperity 
will be required, even under renewed reciprocity acts, to restore the 
shattered nerves of American commercial advancement. 

3. [It is hard to conceive how anyone interested in the healthy exten- 
sion of the commercial advantages of our country or the prosperity of 
American industry can answer your third inquiry except with a most 
positive appeal that all party prejudices may on this great question be 
at once laid aside and make way for the commercially and industrially 
sound principle of reciprocity, fairly guarded by the special needs of 
developing industries, in all future tariff legislation, and though legis- 
lators be more apt to dictate the generality of delegated authority in 
the premises, no tariff law should be enacted, whether for revenue only, 
or for revenue with incidental protection, that did not carry with it the 
plenary authority or direction to the Executive to negotiate the most 
advantageous reciprocity possible with all the foreign nations possible, 
but especially with the nations to the south of us.] 

We permit ourselves to append here that to the attainment of the 
best possible facilities in this direction it were well to call the atten- 
tion of the proper parties to the necessity for extended banking and 
exchange, as well as shipping facilities. But give us the commerce and 
the accessories will come. 

4. It is submitted that if it were possible for the diplomatic service of 
our country to be utilized for a diplomatically aggressive policy in favor 
of American commercial reciprocity, the accomplishment of much great 
good could be attained ; and, this policy once so aggressively continued, 
our America could begin to unloose her present swaddling-clothes 
policy of subserviency to take perceptible strides to her proper and 
relatively dominant commercial station. 

Yery respectfully, yours, H. A. Weller, 

Secretary, 
Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties. 



RECIPROCITY STATEMENTS. 157 

Associated Manufacturers, New York, N~. Y. 

March 21, 1896. 
This is an association of manufacturers of agricultural machinery, 
organized especially for the conducting and developing of foreign trade. 

2. Glass of goods, agricultural and farm machinery. 

3. We have dealings with every country where agriculture is carried 
on to an extent that implements of any kind are used. There is no trade 
in Japan or China for our line of goods that we have ever found. 

4. We have made considerable effort to extend our trade by direct 
efforts. We have established many local agencies with resident firms 
in some countries, have employed travelers who travel direct from this 
office, and have met with fair results in most cases. 

The countries that afford us the best and safest trade are as follows, 
and their importance is in the order they are given: Eussia, United 
Kingdom, Eoumania, South Africa (including Transvaal and British 
possessions), Argentine Eepublic, France, Germany, Australian Colo- 
nies, Chile, Denmark, Italy, Austria- Hungary, Orient (Turkey, Asia 
Minor, and Egypt). 

The trade in the other countries is scattered and general. Spain and 
Portugal a few years ago took our goods to a small extent, but their trade 
has been practically nil for the last two years. 

5. This is a broad question. We have found many obstacles that not 
only restricts but obstructs our trade. To enumerate all of them would 
make this report a tedious one to you, so I will mention a few only. 

Austria. — The laws of this country are such that dealers who handle 
goods made in any country, excepting those having special treaty, are 
deprived of certain concessions of taxes, trade privileges, and other val- 
uable concessions, which are so valuable that they can not afford to 
handle any goods coming from any but the treaty-favored countries. 
Foreigners who wish to establish a branch house in Austria or Hungary, 
unless they were established before the present law was enacted, are 
deprived of many valuable concessions granted to merchants of their 
own country, and have in addition to pay heavy license fees. I think 
the law is that they pay double what citizens of their own country do for 
like business. Another serious obstacle here is that their laws permit 
the importation and manufacture of goods bearing the trade-marks, 
name, and all of American goods, and manufactures from any other 
country, and their sale as the real American article. Their own manu- 
facturers practice this deception. 

France. — They also allow the importation of goods made, say in Ger- 
many, bearing the American trade-mark and manufacturer's name, and 
their sale as American-made goods. 

Eussia, Germany, Eoumania, Italy, Argentina, Brazil, Chile, Peru, 
and the Transvaal permit this, and as a result our goods are manufac- 
tured in other countries, imported into these, and sold as American 
goods, thereby greatly injuring the reputation of American goods and 
trade. This is felt by us more severely in France and Eussia than any- 
where else. 

There is no subject at the present time that is causing the American 
manufacturers more annoyance or loss than this one, and it seems to 
us to be of sufficient importance to be the subject of diplomatic action 
and treaty between the countries named and ours. 

If French wines and Eussian wools were restricted in entering this 
country, unless they enacted and enforced a law similar to our own pre- 
venting importation of goods without country of origin being declared, 
I think it would soon remedy the cause complained ot. 



158 RECIPROCITY STATEMENTS. 

6. France in 1892 passed a tariff law imposing a maximum duty on 
goods imported from countries having no commercial treaty, and a 
minimum tariff on goods imported from those having such treaty ; the 
result is our goods pay about 30 per cent more duty than the same 
class of goods from England and Germany. 

France also imposes a differential duty on all goods imported in any- 
thing but French ships, or in ships that touch any port between this 
country and France, thus attempting to force us to pay $6 per ton for 
freight to Havre by French lines, while we ship the same freight by 
American ships to Havre for $3 per ton. This restriction gives Eng- 
land and Germany the advantage, as they have no ocean to traverse in 
reaching the markets of France. This should be remedied by treaty or 
by changing our tariff laws, imposing the same restrictions. 

7. Judging from the conversations I have had at various times with 
gentlemen high in Eussian official life, I believe if an earnest effort 
were made a treaty could be arranged by which they would admit 
many of our goods, such as agricultural implements, vehicles, hard- 
ware, calicoes, woolens, shoes, etc., at a reduced tariff, by our taking 
their wools, hides, and beet sugar at a differential tariff. This would, 
I think, increase our trade in Russia at least one-third. 

In France, if we were put on equal footing with other nations, I think 
that our trade would increase one-half, as it fell off nearly this when 
the present law went into effect. 

As to the effect of a general reduction of tariffs in foreign countries, 
I do not see as it would benefit us so very much, except in a few 
countries, say Eussia, Germany, France, and Australian Colonies. 
These countries are manufacturing some goods in our line of the lower 
classes. Possibly if their tariffs were lowered we would get some trade 
on this class of goods. If reciprocal treaties were made by which our 
goods were admitted at a lower tariff than those of other countries, 
this would be of great benefit. 

8. As this association was started six years ago, we can not make 
comparison, as a whole, but the writer was connected with the trade 
prior to that time and thinks that as a whole the exportation of our 
class of goods has increased 30 per cent since 1890. 

9. Our selling prices for foreign trade have fallen about 10 per 
cent, as an average, within the last six years. We have not changed 
foreign prices as much as we have domestic, and we get fully 20 per 
cent more for our goods shipped to foreign countries than we do for 
same goods in this country, sell for nearer cash, and consider the trade 
in every way as desirable on the average as that in this country at 
this time. 

10. Foreign competitors have an advantage in wages alone of fully 
20 per cent in cost of goods, but we meet this by using our improved 
appliances. Foreign competitors have every advantage of us in trans- 
portation, not only in freight rates, but in frequent and quick commu- 
nication. 

We are placed at a great disadvantage by reason of delays imposed 
upon us when shipping, in foreign bottoms, via European ports ; in fact, 
our bauds are so tied from this cause that it is a wonder we have any 
foreign trade. 

It is my opinion that if we were assisted by our Government to estab- 
lish steam lines to correspond with those of other nations that our 
foreign trade would double in a few years, and could be secured with 
25 per cent less expense for travelers, etc. 

11. We can compete with all comers, from all countries, not in price. 



RECIPROCITY STATEMENTS. 159 

but in quality and merit, which have become recognized the world 
over, and American manufactures are rapidly securing the command of 
the markets of the world in our department of trade. 

12. The reciprocity treaties were a great assistance to us, and when 
repealed did our trade great damage in all countries affected. 

13. I answer both questions, " Yes," most emphatically. 



Board of Trade, Gainesville, Fla. 

March 23, 1896. 
Dear Sir : Eeplyiug to your communication attached, we desire to 
reply as follows : 

1. Favorable. 

2. We felt that the business of the country was being circumscribed 
or reduced from what it had been under reciprocity. 

3. It is. 

4. Diplomacy " be bio wed." Dig the Nicaragua Canal, and give us 
free ships. 

Very respectfully, Jas. O. Andrews, Secretary. 



Pater son (N". J.) Board of Trade. 

March 24, 1896. 
Sir: In response to your inquiry of March 4, the following minute 
on reciprocity and commercial treaties has been adopted by the 
Paterson Board of Trade : 

1. We believe in reciprocity as entered into with certain foreign 
nations under the tariff act of 1890. The principles lying at the 
foundation of this act, whereby there can be a larger interchange of 
commodities through more favorable conditions to ourselves, call for 
approval by those who desire to see a larger field opened for our com- 
modities. 

2. We believe that the repeal of these arrangements worked an injury 
to the country. 

3. We consider it is to the interest of our people to apply the reci- 
procity principle to future tariff legislation. 

4. In our opinion, by means of diplomatic negotiations, treaties may 
be arranged with many foreign nations, whereby such products of those 
nations as compete very little or not at all with American products, 
and are largely consumed in this country, shall be imported by us free 
of duty, in return for like concessions from those nations, by means of 
which the excess of production of American industries may find a 
profitable market. 

I am, sir, by order of the Paterson Board of Trade, your obedient 



servant, 



W. G. Scott, Secretary. 



' Resolutions by the legislature of New York. 

Resolved, That the inevitable destiny of the United States urgently 
demands that the Government of the United States shall at once inaug- 
urate a foreign and domestic policy as follows: 

1. The immediate construction of coast defenses upon the Atlantic 
and Pacific seaboards, and also upon the Great Lakes. 



160 RECIPROCITY STATEMENTS. 

2. The building of a navy which will make the United States a first- 
class power, and not sixth class among the nations of the world. 

3. An alliance with Mexico and the States of Central and South 
America, offensive and defensive. 

4. Closer commercial relations with the Eepublics of Mexico, Central 
and South America, and to that end that at the coming Congress of 
the States of South and Central America the United States shall foster 
the building of a railroad from Yera Cruz, Mexico, through Central and 
South America, upon a just and equitable basis as to governmental aid 
and support and control by the several powers concerned, to the end 
that the said republics shall be indissolubly connected with the United 
States, as of right they ought to be. 

5. National aid to the Nicaragua Canal, in order that the said canal 
shall be built and controlled by Americans in the interest of American 
trade and commerce. 

6. The acquisition of Cuba by the United States, preferably by pur- 
chase. 

Resolved, Thatcopies of these resolutions be forwarded to theCongress 
and the President of the United. States. 



Wholesale Grocers 1 Association of New York and vicinity. 

March 23, 1896. 

Dear Sir : My deliberate conviction is that what the merchants and, 
indeed, all the people want is a complete rest from tariff changes and 
from all tariff agitation. 

If the Government needs increased revenue, and it can not be obtained 
from internal sources, then Congress would be justified in increasing 
the duty on the fewest possible articles, and on those that can best bear 
the burden. 

If there should be a surplus of revenue, then Congress would be justi- 
fied in making a reduction in the same manner; but I believe that to 
make changes in our tariff for political purposes, and to make such 
sweeping changes as were made by the McKinley bill or by the Senate 
bill is a great hardship to the merchants and the people, and partakes 
somewhat of the nature of a crime. 

To reduce the value of a barrel of sugar from $21 to $14 at the stroke 
of a clock by removing the entire duty at once, and then to give the 
grower a bounty of 2 cents per pound, and in some two years to impose 
a new duty of 40 per cent ad valorem, and then to remove the bounty, 
is to do all that Congress possibly can do to destroy a great industry, 
and to teach the people of the great State of Louisiana that their pros- 
perity does not depend upon the productiveness of her soil or the 
industry and enterprise of the people, but upon Congressional legisla- 
tion. 

If the people were entitled to cheaper sugar and the Government 
could dispense with the revenue, then a gradual yearly reduction should 
have been made and the object could have been accomplished and no 
interest would have suffered. 

I have a large acquaintance with commercial men in many cities, and 
am satisfied that what the merchants and the people of America want 
is perfect rest from tariff changes, excepting for reasons above given. 
Yours, very truly, 

G. Waldo Smith, President. 



RECIPROCITY STATEMENTS. 161 

Business Men's Association, Martinsburg, W. Va. 

March 26, 1896. 
Sir : We have the honor to acknowledge the receipt of a copy of the 
circular letter issued by the subcommitte of which you are chairman, 
asking for an expression of opinion on the working of the so-called 
"Beciprocity treaties" authorized by the third section of the McKinley 
law. In reply to your questions, in the order in which they are asked, 
we beg leave to submit the following views : 

1. In our opinion the effect of the actual working of the reciprocity 
arrangements negotiated by the Government was favorable, though far 
less favorable than would have resulted from treaties of larger scope, 
constructed along the lines suggested by the Secretary of State to 
Congress, when the law amending the tariff was under discussion in 
the Senate. In so far as the so-called reciprocity treaties fell short of 
being what they purported to be, they exerted a bad influence, in that 
they brought discredit upon this as a method of commercial reform 
which it does not deserve, and which will heighten the difficulties of 
future attempts to broaden our trade relations in the same way. If the 
"Hale amendment," and not the colorless " Aldrich amendment" could 
have been adopted, we believe that much more good would have resulted. 
As it was, the increase in our exports during the first fifteen or eighteen 
months under the reciprocity treaties was not greatly in excess of the 
increased exports to countries with which no such reciprocal relations 
existed; and the increase in exports was out of all proportion less than 
the concurrent increase of our importations from the countries in 
question. Hence it appears that the expected expansion of our bread- 
stuff market did not take place, certainly not to the expected extent, 
and one is strongly inclined to think that the narrow and ungenerous 
limits of the treaties, imposed by the " Aldrich amendment," were, in 
part at least, responsible. 

2. It would be difficult in any short and summary way to state the 
effect of the repeal of the reciprocity treaties by the tariff law of 1894. 
Eeports of the Treasury would, no doubt, show just what the increase 
or decrease in every case is, and it would be a relatively easy task to 
determine just how much of this effect was attributable to the repeal of 
the reciprocity arrangements and how much to the enlargement of the 
free lists and the imposition of new schedules of duties. 

3. We regard the Congress as the proper repository of the tariff 
legislation of the United States, and believe it to be more or less unwise, 
if not dangerous, to shift the burden of such obligations to the treaty- 
making branch of the executive department of the Government by 
general law. Under the former law the President was armed with the 
power to emphasize his unfavorable opinion of the customs duties on 
any of these American countries by imposing hardships upon the people 
of the United States ; for the retaliatory provisions of the McKinley 
law meant nothing less. The power of such a commercial embargo is 
a very large and insidious one, and we prefer to see it lodged in Con- 
gress. We believe, however, that some foreign market should be found 
for the surplus American farm products, and if any such policy as that 
proposed by Mr. Blaine and embodied in the "Hale amendment" to the 
McKinley law is possible, we believe that, liberally administered, it 
would tend to bring about this result. If the question of your committee 
simply means, do we favor the reenactment of the "Aldrich amendment," 
as it was finally adopted, we reply that we do not; but, on the other 

H. Eep. 2263 11 



162 RECIPROCITY STATEMENTS. 

hand, would regard such action as unnecessary since the tariff legisla- 
tion of 1894, and both narrow and unwise in principle. 

With regard to the fourth question of your letter, we are not prepared 
to give any answer. 

Yery respectfully, yours, N. D. Baker, President. 



The National Live- Stock Exchange, Union Stock Yards, Chicago, III. 

The following memorial has been unanimously adopted by this body, 
and is respectfully submitted for your serious consideration: 

To the Honorable the Senate and the House of Representatives of the United States: 

The National Live-Stock Exchange, organized for the purpose of protecting the 
interests of the producer and consumer of live stock, having over 2,000 members 
actively engaged in breeding, raising, feeding, shipping, buying, selling, slaughter- 
ing, and exporting all kinds of live stock and their products, respectfully represent 
to your honorable body: 

That certain outlets for their productions have, through the practically prohibit- 
ive restrictions placed on them by certain foreign countries, been denied them, and 
such products forced on already overburdened home markets, entailing great loss on 
the producers, which has had a depressing effect on the entire commercial interests 
of this great country, it being an uncontroverted fact that a depression of the agri- 
cultural interests affects unfavorably every line of commercial enterprise. 

That the said restrictions on the exportation of the products of the industry we 
represent are alleged to have been made on account of the unhealthy condition of 
our live stock, and also as a retaliatory measure to compel this country to admit free 
of duty certain of their productions. The live stock throughout the United States 
was never in a healthier condition, and the disease pretext is the veriest subterfuge, 
because, if such was the case, the strict ante and post mortem systematic supervision 
of our live stock and meat food products made by the United States Government, 
State and municipal officers, who critically examine and pass upon every animal and 
the product thereof offered for sale, preclude the possibility of any animal, or any 
portion of any carcass, from any cause unfit for food, being used as such. Therefore 
the claim that our live stock and live-stock food products are unhealthy or unfit for 
export is without foundation in fact. 

We therefore pray that Congress and the diplomatic departments of our Govern- 
ment will, through their larger experience and more intimate knowledge of the means 
necessary to be employed, enact such legislation as they in their wisdom deem expe- 
dient, and such as this the largest industry in the world demands, looking to a recip- 
rocal exchange of productions, thereby affording the vast industry which we have 
the honor to represent the relief sought, and the opportunity of sending our live 
stock and meat food products to the markets of the world, unhampered by any 
unnecessary and uncalled for restrictions. 

The National Live-Stock Exchange, 
By W. H. Thompson, Jr., President. 

Attest : 

C. W. Baker, Secretary. 



Farmers'' Headquarters, Clarinda, Iowa. 

March 23, 1896. 

Dear Sir : I am directed to say to your committee that our organi- 
zation, without regard to political affiliations of its members, is most 
emphatically for reciprocity and commercial treaties. 

The creation of reciprocity in 1890 was beneficial, yea, it was a bless- 
ing to the nation, while its repeal was a curse, multiplyiDg bankruptcy 
and creating poverty at home and riches abroad. 

We hope and pray for its return — a blessing vouchsafed by the return 
of the good old party to power. 

I am, sir, very respectfully, M. E. Ansbach. 



RECIPROCITY STATEMENTS. 163 

Winter Wheat Millers 1 League, Indianapolis, Ind. 

January 18, 1896. 

Dear Sir : In behalf of the Winter Wheat Millers' League I beg to 
take the liberty of inviting your attention to House bill 3212, introduced 
by Hon. W. S. Kerr January 3, intended to secure a better foreign 
market for grain and its products and other agricultural products. 

In this connection I hand you herewith a small pamphlet, which will, 
perhaps, give you some light upon the extent of milling industries of 
the United States and the discriminations against its products by many 
nations of Europe. I shall be pleased if you will give this subject 
careful attention and lend your influence toward an early and favor- 
able report from the Ways and Means Committee and the prompt 
passage by the House of the measure in question. Without the relief 
which this bill provides the foreign trade of the American miller will, 
within a few years, be completely ruined. I especially ask your atten- 
tion to the result, as set out in the pamphlet referred to, of the abroga- 
tion of the reciprocity treaties with Spain for Cuba and with several 
South American countries. 

Hoping to have your earnest support, I am, 
Yours, respectfully, 

E. E. Perry, Secretary, 

Hon. Nelson Dingkley, 

Washington, D. 0. 



[Pamphlet.] 



Reciprocity and Retaliation Needed — The Dangers that Threaten our 
Export Flour Trade — Unwarrantable Oppression of oub Greatest Manu- 
facturing Industry by Foreign Countries. 

[Reprinted from the Northwestern Miller, Minneapolis, Minn.] 

In considering the present state of the milling trade and endeavoring to form some 
intelligent conception of its conditions and needs, the chief difficulty with which 
the investigator is confronted is the size of the subject. The trade is enormous, its 
needs are enormous, its difficulties are enormous, its unimproved opportunities are 
enormous. One might also say, so great has been the activity of our consular officers 
in its behalf of recent years, that its literature is enormous. As a matter of fact, 
probabTy few millers know how great are the resources of information which the 
State Department has at its command with regard to the manufacture and use of 
flour in every country on the globe. All, or nearly all, of this is the product of the 
last ten years and the direct result of the agitation of associated and individual 
millers for more light on this important subject. To the Winter Wheat Millers' 
League is due a very great deal of the credit for the investigations into new fields so 
far made. But it must, in all fairness, be said that the State Department has responded 
promptly r freely, and fully to the movements inaugurated by millers in behalf of their 
trade. The list of publications which has been issued for the benefit of millers alone 
in the last half dozen years is very considerable, and its value has indeed been high. 
Were it possible for every miller of any importance to collect these publications and 
to give them the attention which they merit, that fact in itself would insure vast 
efforts among millers to remove the many obstacles under which the business labors. 

In considering the immediate needs of the trade, it is hard to choose from this great- 
bulk of information that which is most necessary to give millers an adequate idea 
of where they stand and to indicate to our legislators the direction in which reform 
in our laws, as they affect milling, are most pressingly and sorely needed. However, 
without knowing the vast proportions of the milling trade itself, it would be impos- 
sible to appreciate the importance of remedial measures relating to it. 



164 



RECIPROCITY STATEMENTS. 



MAGNITUDE OF THE MILLING TRADE. 






In respect to the value of its products and the cost of its raw material, milling 
far exceeds any other manufacturing industry working from raw material. To show 
its immense proportions we may quote the census figures for 1880 and 1890, which are 
as below: 



1890. 



Number of mills 

Capital 

Number of employees 



24,338 

$177, 361, 878 

58, 407 



18, 470 

$208, 473, 500 

63, 481 



Cost of material. . . 
Value of products . 



$17, 422, 316 
441, 545, 225 
505, 185, 712 



$27, 035, 742 
434, 152, 290 
573, 971, 474 



We are accustomed to regard our manufactures of lumber, iron, and steel, cotton 
and woolen goods, and boots and shoes as tremendous, as indeed they are, but it is 
interesting to observe that the flour made in the United States was worth more than 
the lumber and other mill products from the log or bolt by $110,300, 000 r more than 
the iron and steel manufactures by $83,000,000, more than the cotton goods manufac- 
tures by $246,000,000, more than the woolen goods by $380,400,000, and more than the 
boot and shoe manufactures by $293,300,000. These are big figures, but none too big 
to show the overwhelming importance of milling in the industrial prosperity of the 
United States. It is interesting also to observe that in the number of plants estab- 
lished but few industries exceed milling. Every village of any size has its mill. 
The ''industry is confined to no section, but prospers wherever wheat grows, main- 
taining the price of the cereal and adding incalculably to the welfare of the farmer — 
the backbone and mainstay of the country's material advancement. ") 

It is, however, to be noted in connection with the census figures above given that 
the tendency of the times is to a lessening in the number of individual plants, while 
at the same time the capital, number of employees, and value of product has greatly 
increased. This is due in no small measure to the difficulties under which the trade 
labors with regard to selling territory. Deprived by discriminating restrictions of 
the field for the disposition of its products which it should enjoy in outside coun- 
tries, American merchant mills are forced to widen their territory at home, and thus 
the competition of the larger proves too strong for the smaller plants and they are 
driven out of the business. 

Contrary to the opinion sometimes expressed that consolidation of this sort is 
desirable, we believe it to be regrettable so far as the general prosperity of the coun- 
try is concerned. The small mill is an important factor in the community where it 
is located. No institution does more to advance the general average welfare. Were 
it possible for American merchant mills to sell their product more largely outside, 
we should be the gainer, both directly and indirectly. The rural community is a 
severe sufferer when its mill is crowded to the wall by undue competition. While it 
may eat whiter flour, and that of more perfect manufacture, it probably gets no more 
healthful or nutritious product, and it makes the change at the expense of its own 
pecuniary advancement as a community. ^If foreign tariffs allowed American millers 
to export flour freely, upon fair terms as compared with wheat, the difference as 
regards the prosperity of the country would be very great and very directly mani- 
fested. The cry of low wheat would be no longer heard, for we should, under such 
a state of things, have little or no unground wheat to spare.} 

The truth of these assertions is so well recognized by all who have given the sub- 
ject any thought that they really border upon the axiomatic. All intelligent mill- 
ers know that the United States is suffering heavily from the duties imposed upon her 
flour by almost all foreign countries. While this taxation would in itself seem to be 
a sufficient burden for the trade, it is only a beginning of the difficulties which exist. 
A fact which bears with fully as heavy weight upon the prosperity of our millers is 
that in nearly every country importing wheat and flour wheat is admmitted under a 
duty so light as to discriminate seriously against the manufactured product. 

This tendency is one which constantly increases among continental countries. 
They are willing to take our wheat — for the advantage of their own millers — but they 
shut out our flour in response to the clamor of the same element — the home manu- 
facturer. It is this condition of things against which the American miller most 
bitterly protests. Under the state of affairs which now exists the United States is 
hit hard, "both going and coming." Our wheat is taken and our flour is excluded. 
Thus, the manufacturing profit goes into foreign hands, and our export mills, shut 
out abroad, crowd bauk upon the territory of others, crushing out smaller mills and 
damaging the communities in which they are located. This process must go on 
until there is a fair market abroad for American flour. There can not be such a 
market until discrimination between wheat and flour is removed, and this discrimi- 



RECIPROCITY STATEMENTS. 



165 



nation will not cease except as the result of retaliation upon foreign imports — a 
conrse for which the laws of the United States distinctly provide, hut of which pro- 
vision practically no advantage has so far heen taken. 

At this point we may with profit consider the conditions under which our wheat 
and flour go to continental markets. The conditions are indicated by the figures 
below : 

European tariffs. 





Wheat per 
bushel. 


Flour per 
barrel. 




"Wheat per 
bushel. 


Flour per 
barrel. 




Free. 
Free. 
Free. 
$0.29 
.42 


$0. 386 
Free. 
Free. 
1.49 
2.26 




$0. 058 
.32 
.47 
.37 
.24 


$0. 386 


Holland 




2.21 






2.18 


Italy 




1. 88 to 2. 73 






1.54 









* Prohibited, except under conditions prescribed by the Government. 

Of the duties above enumerated, which are compiled from the latest statistics 
procurable, that of Belgium has been imposed within a few months, entry of flour 
and wheat to that country having formerly been free. France has raised her tariff 
within the past two years to a prohibitory point, shutting our flour out completely. 
Germany has done the same, in response to a similar clamor from her milling inter- 
ests, though she is to quite an extent dependent on outside countries for raw mate- 
rial. Denmark's millers are now agitating for a tariff on flour and it remains to be 
seen whether the movement will prove successful. 

Taking 4| bushels of wheat to represent a barrel of flour, the discrimination made 
by the countries above enumerated against the importation of flour is as follows: 



Belgium . 
Holland . 
Denmark , 

Italy 

Spain 



Per barrel. 



$0. 386 



.185 
.370 



Switzerland 
Germany .. 
Portugal — 

France 

Sweden 



Per barrel. 



$0. 125 

.770 

.065 

215 to 1. 065 

.46 



It will thus be seen that in no continental country which serves as a market for 
our wheat, with the exception of Holland and Denmark, is our flour received on 
equal terms, while in the chief consuming country it is very largely excluded by the 
onerous taxes placed upon it. 

AMERICAN TARIFFS. 

Leaving European countries, we may well look at those nearer home, in which we 
might fairly expect to maintain our flour market unquestioned, but where, on the 
contrary, we are handicapped to an unbearable degree by arbitrary taxation. A 
striking instance of this condition of things is afforded by Cuba and Puerto Rico, and 
our readers are doubtless all familiar, so great has been the agitation of the subject, 
with the arbitrary and unwarrantable course of Spain with reference to American 
flour in these islands. Our flour, under the second-column or favored-nation clause 
of Spain's tariff regulations for Cuba and Puerto Rico, is now paying a duty, includ- 
ing port charges, of $4.16 pe* barrel. Under the reciprocity treaty between the 
United States and Spainpwhich went into effect Janiiaj cy 1, 1892^ and which made 
special concessions as to sugar^our flour was admittedto Uuba and Puerto Rico at a 
duty of $1 per 220^ pounds, or about 8,8 cent s per barrel. Upon the abolition of the 
reciprocity treaty, Spain promptly seized the opportunity to raise the tariff on flour 
to the first-column or least-favored-nations rate, making it about $4.44 per barrel. 
This was subsequently reduced, by the excessive agitation of the Cubans and Ameri- 
cans interested, to $4.16 per barrel, where it now stands. Winter-wheat millers 
especially, who formerly had an important and growing trade in these islands, feel 
very severely and complain with much bitterness of the effect of this heavy tax upon 
their business. 

RECIPROCITY AND ITS EFFECTS. 

/ At about the same time when the reciprocity treaty was enacted with Spain, as 
applying to Cuba and Puerto Rico, others were concluded with Brazil and the Central 
American States. The policy of reciprocity, which was always a very popular one 
with the thinking business element of the country, was, however, completely obliter- 
ated by the passage of the Wilson bill. Something of the effect of the abrogation of 



186 



RECIPROCITY STATEMENTS. 






reciprocity relations may be seen by the following figures of flour exports compiled 
from Government returns : 



1893-94. 



1894-95. 



January 1 

to July 31, 

1894. 



January 1 

to July 31, 

1895. 



Cuba 

Puerto Rico 

Santo Domingo 

Other West Indies and Bermuda 

Total 



Barrels. 

662, 248 

200, 813 

44, 173 

937, 556 



Barrels. 
t 379,856 

118, 617 
41, 836 

951, 492 



Barrels. 

398, 283 

111, 682 

24, 323 

546, 640 



Barrels. 

200, 932 
67, 790 
23, 821 

550, 555 



1. 844. 790 



1, 491, 801 



1, 080, 928 



843, 098 



These figures show that the loss to American millers in Cuba and PuerJtfLP^co by 
the abrogation of the reciprocity treaty was nearly half of their trade. [The case of 
Cuba is an extreme one, owing to the oppressive policy of Spain toward tfrart island, 
which, it is believed, can not, in the nature of things, long continue, and certainly 
should not do so; but, in a less marked degree, the abrogation of reciprocity has 
affected our flour trade with every country with which treaties were concluded. As 
a matter of fact, the reciprocity policy, which promised so much for millers, had 
only just been inaugurated when it was destroyed by reactionary legislation. What 
proportions it might have reached under wise guidance, or what proportions it may 
hereafter reach under enlightened laws, is, however, faintly indicated by the results 
of the short trial which it received?^ 

To Brazil our flour was admitted -4s4e in return for suitable concessions as to the 
entrance of Brazilian products — mainly coffee — into this country. Our trade in Bra- 
zil had been a constantly increasing one for many years, as the following figures of 
average yearly exports show : 



Years. 


Barrels. 


Years. 


Barrels. 


1840 1849 


253, 000 
395, 000 
352, 000 
510, 000 


1880-1889 


645, 000 
817, 000 
921, 000 


1850 1859 


1890 1894 


1860 186!) 


1894 


1870 1879 











In the year ending with June 30, 1895, however, following the abrogation of our 
treaty with Brazil, our exports of flour dropped back to 775,425 barrels. American 
flour now pays a duty of about 42_cents per barrel. It is, moreover, in greater need 
of tariff concessions in that country than it has ever been before, from the fact that 
Argentina has gone, to a considerable extent, into the manufacture of flour, and is 
working, with some success, to secure possession of adjacent Brazilian markets. 

American flour is almost entirely excluded from Mexico — which, owing to the fact 
that little wheat is grown in that Republic, should afford a large field for it — by the 
duty of about $10.66 per barrel. Freight rates are something like $10 per ton, and 
the basis of exchange is unfavorable, yet, with these enormous obstacles confronting 
it, 52,065 barrels of American flour found its way into Mexico in 1894-95 and 51,700 
barrels in 1893-94. With relief in the direction of a more rational tariff it can not 
be doubted that business in American flour would grow rapidly. 

The South American Republics and most of the West India islands have duties on 
flour which cut an important figure in American exports, since the United States 
already supplies some flour to the majority of these countries, and is the natural 
source of a much greater supply to them, were not their duties, to a greater or less 
degree, prohibitory. Probably there are few of these countries which would not be 
ready to admit American flour on favorable terms were they assured that reciprocal 
favors would be granted to their products by the United States. Among the duties 
imposed by these countries and islands we may instance the following, as showing 
the degree to which American flour is barred out by the tariff: 





Per barrel. 




Per barrel. 


Central America : 


$2.65 

.25 

3.54 

.88 
5.49 
3.14 

.60 

High duty. 

5.25 


West Indies : 


$0.94 




Bahamas (10 per cent and) 


.60 




5 per cent. 

1J per cent. 

1.94 














4.50 




St. Thomas 


3 per cent. 
.75 




Trinidad 






.90 






3.93 









RECIPROCITY STATEMENTS. 167 

Of recent years, United States mills have acquired quite a trade in China and 
Japan, which is not hampered by an import duty of any consequence. It, however, 
suffers very much from the "likin" or district taxes imposed upon it in China at 
each district boundary which it passes. This must necessarily operate to greatly 
restrict the trade, which, nevertheless, increases at a very fair rate, year by year, 
indicating what might be done in China were these vexatious taxes removed. 

From the north as well as the south United States millers are hampered by tariffs 
on flour, Canada, New Brunswick, and Nova Scotia having a duty of 75 cents per 
barrel and Newfoundland one of 25 cents per barrel. While these taxes are severely 
felt, especially by the northwestern trade, it will be seen by the figures given here- 
with that the United States manages to maintain her foothold in the Dominion, 
though with little, if any, progress. 

OUR SITUATION SUMMARIZED. 

By looking over the figures given in the matter preceding, we shall perceive that 
the United States has practically no untaxed selling territory except Great Britain, 
Holland, and Denmark. Our flour has been driven out of France, Germany, Belgium, 
and Sweden by heavy and discriminating tariffs, and Denmark is even now agitating 
the feasibility of imposing a similar tax. On our southern border we are shut out 
of Mexico almost absolutely, and out of Cuba to a great extent. Brazil lias placed, 
in retaliation for withdrawal of privileges as to the export of coffee, a duty on our 
flour which aids the millers of Argentina to supplant it. Most other South American 
countries in which we should have a good trade, if our laws favored reciprocity rela- 
tions, have barred us out more or less completely. On the north, Canada and the 
maritime provinces, with the exception of Newfoundland, have weighted our trade 
to an extent which is greatly felt by our millers. 

WHAT IS THE REMEDY? 

As has already been said, American millers, while they suffer seriously from the 
simple fact that their flour is taxed on all sides, do not, by any means, find this their 
only grievance. The practice of admitting our wheat at a lower rate than our flour 
adds greatly to the difficulties under which the trade labors. There is little, if any, 
doubt that all continental countries which discriminate against our flour, as com- 
pared with our wheat, can be compelled by retaliatory measures to admit them on 
equal terms. France, which does not ordinarily need much of our wheat, o wing to 
her own large crop, is an especial offender against the millers of the United States, 
in the fact that her reexportation laws are such as to amount to a bounty on her 
flour exports. Not content with absolutely barring out our flour, she appropriates 
our markets in Great Britain, taking our wheat when she wants it and utilizing it 
to deal us a blow in our principal selling territory. France is both directly and 
indirectly an offender against the flour makers of the United States. Her exports 
of manufactures to this country are very large, and it is highly probable that a little 
vigorous retaliation in behalf of American flour would bring France to see the 
advisability of more just methods. 

The situation in Belgium, which shut our flour out by a tax imposed this spring, is 
indicated by the fact that lor the past six months the arrivals of American flour at 
Antwerp have been only about 247,000 kilos, whereas formerly about 5,000,000 kilos 
were received in that time. - There is no unity of feeling as to the tariff in Belgium, 
the opposition to it being great among the consuming classes. Moreover, the Bel- 
gian millers find that French flour, against which the tax was mainly directed, comes 
in as freely as ever, ancTthey are "dissatisfied with the results. In view of this state 
of things, it is most probable that the removal of the Belgian duty might be secured 
by comparatively small pressure from our Government. 

There is no continental country whose flour tariff is oppressive to the American 
trade which does not export manufactured goods, more or less heavily, and which is 
not, therefore, especially open to the effects of retaliatory legislation. It is a fact 
so patent as to require little or no discussion, that in almost, if not quite, every one 
of these Countries the imposition of taxes unfavorable to American mill products 
might have been prevented by legislative interference at the proper time. 

On our own continent, and, as far as possible, in Europe, the policy of rexiprocj 
so auspiciously inaugurated, should be steadily pushed. This is a policy which 
equitable on its face, which does not ask something for nothing, but which, on the 
other hand, does not propose to give something for nothing. It is the trade policy 
par excellence, and no greater blunder has ever been made in tariff legislation than 
the abrogation of the reciprocity treaties which had already been established to 
the south of the United States. There is a certain sympathy between the southern 
Republics of America and the United States which inclines them to enter into 
trade relations with us. At the same time, all have their own commodities to offer, 
and the principle of meum and teum is just as well developed with our southern 



168 RECIPROCITY STATEMENTS. 

neighbors as it is with ourselves. An immense field for our flour lies awaiting 
development in these countries, and it should he the care of every miller and millers' 
association to work for the restoration and advancement of the policy of reciprocity 
with these Republics. Brazil, it is believed, would gladly respond to overtures in 
this direction. Cuba and Porto Rico, though not now independent, seem in a fair 
way to become so, when it is very certain that they will be glad to make acceptable 
reciprocal arrangements as to our flour. Even under existing conditions, it is said 
that Spain does not find the effects of the severe tariff against American flour satis- 
factory, and that she is inclined toward a more lenient tax. 

WHAT WE ARE EXPORTING. 

In spite of all the difficulties under which it has labored, the flour trade of this coun- 
try has grown very steadily. The record for 1895, however, shows the bad results of 
the oppressive legislation recently enacted. We have lost 1,600,000 barrels from the 
record of 1894, while our wheat exports have also been 12,300,000 bushels less. We 
have at present to contend with heavy wheat exports from Russia and Argentina, 
which enable British millers to supplant our flour in a greater degree than they have 
done in former times. Since this state of things is almost certain to continue, there 
is the greater necessity that we secure fair markets in the many countries which now 
endeavor, arbitrarily, to shut us out. The milling capacity of the United States is 
probably three times as great as is necessary to supply the flour wants of our own 
citizens. It is obviously of high importance to the farmer, the miller, and, indi- 
rectly, to all classes of our population, that our wheat should be ground at home. 
It remains to be seen whether Congress will longer permit the chief industry of the 
United States to be maimed and dwarfed at the pleasure of foreign countries, which, 
nevertheless, expect the United States to import their manufactured products heavily 
and on favorable terms. 

The large table given herewith shows the exports of American wheat and flour for 
six years ending June 30, with destinations. By observation of these figures, the 
position of our trade may be plainly seen. The disproportionate quantities of our 
wheat taken by continental countries clearly indicates what might be done by our 
millers there, even under a high tariff, were wheat admitted on equal terms with 
flour. Our considerable exports to Central and South American states, and even to 
Mexico, under the present oppressive tariff system, show plainly how easy it would 
be to enlarge those fields for our flour by suitable reciprocal treaties. 

A further serious grievance among American millers is that wheat is exported at 
relatively cheaper freights than flour. This suicidal course on the part of the trans- 
portation companies adds to the already heavy discriminations against the manufac- 
tured product and greatly increases the burden of the home flour maker. Statistics 
of the Government, just at hand, show that, for the ten months ended October 31, 
1895, our exports of wheat to Great Britain increased over 2,700,000 bushels, while 
our flour exports fell off about 1,100,000 barrels, a state of things which is attributed 
largely to the discrimination in freight alluded to. It is so evident that such dis- 
crimination is ill-advised and iniquitous in its effects that no argument would seem 
to be needed to secure legislation calculated to do away with the practice. 

IN CONCLUSION. 

To one possessing any familiarity with the milling industry and its immensity it 
appears wholly superfluous to adduce arguments as to the bald necessity to the 
country of its preservation. We are, before all, an agricultural nation, and our pro- 
duction of the cereals for many years must continue enormous. The advisability of 
maintaining and expandingour flour trade, as compared with that in the raw material, 
wheat, is very simply demonstrable. We exported, in the year ending June 30, 1895, 
76,102,704 bushels of wheat, and got for it $43,805,663. We exported, in the same 
time, 15,268,892 barrels of flour, and for it we received $51,651,928. Had the wheat 
shipped gone, as flour, the gain to the assets of this country, even at the present low 
values of the manufactured product, would have been over $13,000,000. This takes 
no account of the profit which would accrue to American farmers, mechanics, and 
mill employees, most numerous and widely- distributed classes, and, through them, 
to all our citizens, of every rank and degree. 

The arguments in favor of legislative aid and countenance to our mills are so 
unimpeachable in quality, and so irrefutable in logic, that it would seem as if there 
could be no need of pressing them upon the public attention. Yet, when we find 
American flour barred out by duties from nearly all the countries on the face of the 
globe; when we find our wheat admitted under a low tariff and milled to be used as 
a club to destroy our flour trade ; and when, in addition, the very transportation 
companies which carry our products abroad discriminate heavily in favor of the raw 
material, it becomes evident that, plain as these facts may be, they are yet not so 
plain as to be visible to those from whom alone the remedy can come— our country's 



RECIPROCITY STATEMENTS. 



169 



lawmakers. The Northwestern miller is convinced that if these conditions were 
generally understood by our legislators as they exist, they would no longer permit 
the dominant industry of the United States — an industry upon whose prosperity that 
of millions of our citizens directly and indirectly depends — to struggle along against 
heavy and increasing odds, unaided and unencouraged, as it is now doing. 

Wheat and flour exports from the United States, 1890-189? 



Wheat. 



Flour. 



1891. 



Wheat. 



Flour. 



Wheat. 



Flour. 



United Kingdom 

Germany 

France 

Belgium 

-^Holland 

Denmark 

Portugal 

Italy 

Russia 

Sweden and Norway 

Canada 

Nova Scotia andNew Bruns 
wick 

British Honduras 

Bermuda 

Newfoundland and Labrador 

Costa Rica 

Guatemala 

Honduras 

Nicaragua 

Salvador 

Mexico 

Miquelon, Langley, and St, 

Pierre Islands 

~> British West Indies 

Danish West Indies 

Dutch West Indies 

French West Indies 

Haiti 

Santo Domingo 

Cuba 

Puerto Rico 

.^Brazil 

Chile 

Colombia 

Ecuador 

British Guiana 

Dutch Guiana 

French Guiana 

Peru 

Urcguay 

Venezuela 

^> China 

=»» Hongkong 

Japan 

Asiatic Russia 



Bushels. 

38, 240, 523 

8,786 

3, 846, 505 

3, 741, 303 

385, 170 



2,812,- 



Barrels. 

7, 423, 988 

6,275 

283 

170, 094 

494, 108 

390 

21, 409 



Bushels. 

29, 820, 650 

263, 887 

13, 843, 054 

4, 033, 382 

380, 245 

38, 379 

3, 124, 648 



Barrels. 

7, 037, 420 

8,864 

70, 134 

115, 896 

292, 034 

15, 012 

5,730 



Bushels. 
67, 293, 960 

7, 635, 926 
42, 139, 488 
19, 451, 804 

8, 515, 631 

1, 779, 539 

2, 937, 071 
596, 022 



2, 270, 769 



12, 346 
581, 383 



90, 996 
10, 998 



7,988 
2, 548, 211 



10, 902 
280, 150 



15, 102 
15, 625 



1,231,409 
5, 190, 881 



21, 000 
32, 000 



1, 768, 234 
27, 592 



92, 039 



129, 951 
37, 148 
47, 109 
12, 130 
24, 841 
47, 875 
31, 101 

16, 564 
456, 438 

31, 377 

21, 529 
110, 313 
167, 740 

31, 675 

255, 820 

151, 996 

687, 342 

340 

51, 420 

31, 036 
171, 012 

12, 505 

4,704 

120 

10, 809 
173, 759 

14, 634 

497, 697 

29, 756 

11, 590 



24, 802 
33, 005 



580, 127 
45, 134 



63, 956 



117, 086 
39, 131 
62, 528 
18, 822 
32, 507 
59, 784 
37, 584 

10, 657 
523, 216 

24, 772 
21, 497 
111, 549 
224, 938 
38, 431 
114, 447 
127, 983 
722, 369 

11, 607 
56, 696 
36, 101 

147, 002 

13, 803 

4,302 

1,507 



21, 399 
36, 907 



164, 622 
57, 594 



194, 015 
34, 474 

473, 046 
75, 736 
12, 595 



Total 



53, 246, 704 



12, 082, 591 



54, 807, 468 



11, 214, 054 



Barrels. 

9, 603, 910 

54, 277 

210, 402 

230, 983 

563, 485 

32, 625 

49, 765 



85, 424 
35, 095 

332, 996 

16, 955 
15, 277 

17, 711 
122, 824 

26, 637 

86, 700 
14, 440 
31, 607 
65, 160 
34, 602 

11, 723 

475, 855 

26, 928 

21, 916 

130, 196 

201, 813 

29, 231 

366, 175 

162, 147 

918, 547 

76, 006 

69, 830 

25, 501 

157, 639 

18, 837 
4,888 



194, 631 
13, 718 

457, 690 

38, 002 

9,790 



156,456,231 15,042,746 



170 



RECIPROCITY STATEMENTS. 



Wheat and flour exports from the United States, 1890-1895 — Continued. 





1893. 


1894. 


1895. 




Wheat. 


Flour. 


Wheat. 


Flour. 


Wheat. 


Flour. 


United Kingdom 


Bushels. 

75, 513, 134 
3, 136, 326 

7, 494. 384 

8, 794, 955 
8, 556, 870 
1, 646, 027 
4, 985, 235 

638, 965 


Barrels. 

10, 361, 860 

209, 719 

1,818 

195. 544 

953. 525 

37,188 

5,510 


Bushels. 
50, 868, f>80 
1, 760, 779 
8,701,100 
7, 028, 255 
6, 666, 186 
1,010,989 
5, 730, 231 
84, 636 


Barrels. 

9, 987, 179 

286, 129 

1,963 

182, 722 

1, 183, 602 

31, 145 

6,087 


Bushels. 

54, 373, 341 

2, 526, 930 

1, 596, 791 


Barrels. 
8. 857, 529 
256 650 




1,102 
Note 1. 




Holland 




Note 1. 






Note 1. 






Note 1. 


Italy 




Note 1. 






215 

64, 338 

408, 772 

11, 069 

8,731 
17. 071 

100, 487 
48, 843 
87, 597 
13, 387 
30, 922 
68, 755 
51, 700 

12, 994 

549, 824 
27, 281 

22, 475 
124, 820 
196, 085 

44. 173 
662, 248 
200, 813 
920, 809 
256 
108, 495 

24, 653 
218, 847 

23, 275 
3,306 

918 




Note 1. 


Sweden and Norway 


675, 171 
5, 529, 705 


82, 658 
418, 120 

18, 051 

10, 423 
18, 655 

130, 804 
37, 297 
79, 583 
14, 529 
23, 905 
59, 756 
51, 700 

11, 824 
511, 552 

28, 664 

26, 993 

124.969 

204. 095 

24, 935 

616, 406 

167. 053 

837, 039 

7, 065 

75. 575 

32, 999 

181, 860 

18, 372 

3,173 

287 

27 

210, 098 

16, 059 

550, 132 

51, 836 

10, 714 


458,042 
4, 193, 058 




Note 1. 




Note 5. 


Nova Scotia and .New Bruns- 




Note 5. 










Note 2. 










Note 3. 










Note 5. 




26, 766 
24, 873 


20, 000 
19, 867 










Note 2. 






Note 2. 










Note 2. 










Note 2. 








7,938 


52, 065 


Miquelon, Langley, and St. 






Note 5. 










Note 3. 










Note 3. 











Note 3. 








Note 3. 








Note 3. 










41, 836 








379, 856 










118, 617 






63 
83 


63 


775, 425 


Chile : 


Note 4. 








113,020 










Note 4. 








Note 4. 










Note 4. 










Note 4. 










Note 4. 










Note 4. 








215,412 
23, 717 

583, 608 
68, 428 
19, 025 




Note 4. 








36, 144 










































Total 


115, 086, 339 


16, 421, 972 


88, 415, 230 


16, 859, 533 


76, 102, 704 


15, 268, 892 





Note 1. — Included under the head "Other Europe" in the State Department's preliminary report 
for 1884-85. " Other Europe " (excluding the United Kingdom, Germany, and France) is credited with 
taking 13,296,951 bushels of our wheat and 1,050,310 barrels of our flour in the year ending June 30. 
In 1893-94 these countries took 22,657,145 bushels wheat and 1,565.064 barrels fio'ur, showing a loss of 
9,360,184 bushels wheat and over 500,000 barrels flour for the past year. 

Note 2.— Classed in preliminary report for 1894-95 as "Central' American States and British Hon- 
duras," our wheat exports were 91,000 bushels, or about twice those of 1893-94, and our flour exports 
282,323 barrels, or 24.000 barrels increase. 

Note 3.— Classed under "West Indies and Bermudas" in preliminary report, and credited with 
951,492 barrels flour, against 937,556 barrels in 1893-94, a gain of 11,000 barrels. 

Note 4.— Classed with " Other South America " (including all countries except Brazil and Colom- 
bia), for which territory the receipts of American flour were 446,811 barrels in 1894-95, against 486,677 
barrels in 1893-94— a loss of 39,866 barrels. 

Note 5. — Classed in report for 1894-95 as " British North America," the receipts of American flour 
being 916.995 barrels, against 550,740 barrels. It is also interesting to note that British North Amer- 
ica, though so large a wheat producer, took 4,110,255 busbels of our wheat in 1894-95, and 4,260,805 
bushels in 1893-94. 

British India a»d the East Indies, not named separately in the table, received 8,165 barrels Ameri- 
can flour, a.2.ainsf3,600 in 1893-94; other Asiatic countries, excluding China and not including Ocean- 
ica, 951,732 barrels, against 736,809 barrels, and Africa 14,757 barrels, against 19,015 barrels. 



Buffalo Merchants 1 Exchange, Buffalo, JSF. Y. 

March 23, 1896. 
Dear Sir: The Buffalo Merchants' Exchange is on record as being 
favorable to reciprocity, and the members deem it expedient and ad vis- 



RECIPROCITY STATEMENTS. 171 

able to apply the reciprocity principle to future tariff legislation, and 
recommend the enactment of a general law authorizing the President 
to negotiate reciprocity treaties with foreign nations so far as possible. 
Yours, truly, 

William Thurstone, Secretary. 



National Association of Wool Manufacturers. 

March 23, 1896. 

Dear Sir : Your circular letter of March 4, 1896, asking the views of 
this organization as to the effect of the reciprocity treaties negotiated 
under the act of 1890 upon our foreign commerce and of their repeal, 
has been received, and after consultation with members of the execu- 
tive committee 1 beg to submit the following reply: 

This organization believes most heartily in the general principle of 
the reciprocity clauses of the act of 1890; believes that they were 
decidedly beneficial in extending the foreign commerce of the country, 
and favors their renewal at the earliest moment practicable. It is not 
able to offer any evidence in support of this belief outside of that con- 
tained in the official statistics of our foreign commerce, because the 
operation of these treaties did not extend to the particular industry in 
which its members are engaged. There are reasons for this which 
must be obvious to the members of your committee. The trade of the 
South American countries in woolen goods is at the most a small mat- 
ter, as climate and habits lead to a comparatively limited consumption 
of these goods in those countries for clothing purposes. Even if the 
demand was larger it is not to be expected that American mills could 
supply it, even under the favorable conditions of reciprocity treaties, 
because the cost of production of these goods in the United States is 
so much greater than in the competing countries of Europe that our 
manufacturers can not ship to these markets with any expectation of 
underselling those who now have possession of them. The advantage 
gained by reason of the reciprocal arrangements would need to be at 
least equal to the tariff on woolens imposed by the United States 
Government as the condition of importation into this country, for 
domestic manufacturers do not find it possible, with the existing duties 
of 40 and 50 per cent, to control their own home markets in the most 
important lines of woolen goods. 

There is another consideration in this connection, which has an impor- 
tant bearing upon the answer to your third question, asking if it is 
"expedient and advisable to enact a general law authorizing the Presi- 
dent to negotiate reciprocity treaties with foreign countries, so far as 
possible." With several of the South American countries wool is an 
important article of export, and with one of them, the Algentine Kepub- 
lic, it is the most important article of export. From the several South 
American countries, mostly Argentina,we imported more than 37,000,000 
pounds of wool in the calendar year of 1895, having a value of nearly 
$5,000,000. In previous years, under the operation of the tariff of 1890 
and those preceding it, our South American wool imports were about 
10,000,000 pounds, mostly confined to the third class or carpet wools. 
It is well known that the wool tariffs have been especially framed for 
the exclusion of the South American mestiza wools, which are of very 
heavy shrinkage, and the competition of which was especially feared 
by American wool growers at the time of the passage of the tariff act 
of 1867. 



172 RECIPROCITY STATEMENTS. 

I cite these facts for the purpose of directing the attention of your 
honorable committee to the obstacle they present to the enactment 
of "a general law authorizing the President to negotiate reciprocity 
treaties" in connection with any general tariff legislation which con- 
templates a restoration of the duties on wool. It is not at all probable 
that the Argentine Republic, for instance, would consent to negotiate 
any reciprocity treaty which involved the exclusion of her chief product 
from the Tjnited States, where her people know that a large demand 
for the mestiza wools exists, and the sale of which would be greatly 
increased under any reciprocal arrangements which made it the basis 
of future commercial intercourse between the two countries. 

The manufacturers connected with this association are as a rule men 
who recognize that the industry of wool growing, if it is to be success- 
fully carried on in this country, must be protected in some degree from 
the competing wools of South America, which are raised under condi- 
tions which involve a much lower cost to the producer. By reason of 
their attitude in this respect, and in view of the fact that they antici- 
pate no extension of their markets in South America in consequence of 
reciprocity treaties, they are debarred from advocating any such general 
law as you have suggested in your circular. 
Very respectfully, 

S. IS. D. North, Secretary. 



Board of Trade, Glencoe, Minn. 

March 23, 1896. 
Sir: In reply to your circular letter of the 4th instant will state: 

1. I think the reciprocity negotiations of 1890 with foreign nations of 
the Western Hemisphere were favorable to the United States. 

2. The repeal of the act of 1890 by the tariff act of 1894 caused a 
restriction on the commerce of the United States, for the reason we 
had solicited their trade and had offered to exchange our productions 
for theirs, which they accepted, as it appeared a good market for their 
agricultural and mineral productions, and on our part our manufactories 
were producing more goods than we could consume, and, as those were 
nonmanufacturing nations, it would keep our artisans employed and 
stimulate commerce, both in the construction of vessels, in freighting 
them to and from the foreign ports, in the exchange of commodities 
which the tariff of 1894 abrogated. 

3. "Is it expedient and advisable to apply reciprocity to future tariff 
k / legislation, etc. % " (a) Yes ; to nations that are consumers of our manu- 

/ factured goods and also large consumers of our agricultural produc- 
/ tions. (b) No; do not think it expedient to enact a general law.; the 

laws should be special with each nation, and should be ann ailed when 

not fully reciprocal. 

4. What can be accomplished by diplomatic negotiations, etc.? 
Have our diplomatic agents get the privilege from the countries to 

which they are accredited of opening a free exhibit of such goods as 
we manufacture or produce that would be desirable in the particular 
section or country they are located in, and have the sample goods 
admitted free of duty, and our naval vessels could not be better 
employed than in the free transportation of such exhibits. 

Finally, in regard to the tariff' legislation, I think it worthy of your 
consideration, the mode of levying duties. I think that the duties on 



RECIPROCITY STATEMENTS. 173 

imports should be specific. An ad valorem duty is on the fictitious 
value, that may vary at each port of shipment, and a specific duty 
would do away with false invoices and other dishonest means to over- 
reach the Government. Every article can be classified and graded, 
and a much larger revenue received. 
Yours, obediently, 

Henry Wadsworth, President 



The Louisiana Sugar and Rice Exchange, New Orleans, La, 

March 9, 1896. 

In reply to your inquiry as to the views we entertain on the question 
of reciprocity, we would say that the adoption of this policy in 1890 was 
a revival of the policy of Mr. Madison's resolutions in 1793, which had 
again been sought to be carried out by Mr. Benton in 1829-30, the first 
section of Mr. Benton's bill closely resembling the first section of the 
sugar schedule of the McKinley bill. Mr. Blaine's efforts toward the 
adoption of this policy bore fruit in the McKinley law, and abundant 
statistical information has already been laid before Congress. 

Our opinion is necessarily based upon the manner of carrying out the 
policy. Were Congress to take off' the duty on sugar, as the lever to 
open the ports of other countries to our products, and make no repara- 
tion to our sugar producers for thus leaving them naked, we would 
consider it unjust and unwise, but were the bounty law reenacted it 
would be both just and wise. 

Yours, truly, J. C. Murphy, President. 



Read of the Lakes Millers' Association, ofDuluth and Superior, Minn. 

March 18, 1896. 

Dear Sir: The Millers' National Association, of Milwaukee, Wis., 
have sent us a copy of your circular letter of March 4, 1896, with the 
request that we reply to same, and in doing so we wish to state that 
our remarks are confined entirely to the effects of the reciprocity trea- 
ties on our foreign trade in flour, and not the foreign commerce of the 
United States in general. 

1. The effect of the reciprocity arrangements negotiated by the Gov- 
ernment under authority of the tariff act of 1890 was favorable to the 
furthering and enlarging of our business with the countries affected. 
Take, for example, Cuba. The flour shipments to that country during 
the years 1890-1894 were -as follows: 

Barrels. Barrels. 

1890 225,820 1893 616,406 

1891...., 114,447 1894 662,248 

1892 366,175 

which shows a gratifying increase during the years the treaty was 
in effect, our flour during that time paying a duty of 88 cents per 
barrel. 

. The trade with Brazil during these years also shows a substantial 
increase, being: 

Barrels. I Barrels. 

1891 722,367 I 1893 837,639 

1892 918,447 I 1894 920,869 



174 RECIPROCITY STATEMENTS. 



while our shipments to Germany show a still larger percentage of 
increase, being : 

Barrels. 

1893 209,719 

1894 286,229 



Barrels. 

1891 8,864 

1892 54,277 

2. The effect of the repeal of the tariff act in 1894 was that our busi- 
ness instead of increasing, as it had been under the stimulating effects 
of the reciprocity treaty, fell off to a remarkable degree, our exports 
to Cuba in 1895 being only 379,856 barrels against 662,248 barrels in 
1894, and the duty which under the treaty had been 88 cents per barrel 
was increased to $4.16 per barrel, which it now is, and a prohibitive one. 

Our trade with Brazil fell off during 1895 about 145,000 barrels and 
where heretofore our flour was admitted free there is now a duty of 52 
cents per barrel. Our shipments to Germany in 1895 being 256,650 
barrels, compared with 286,229 barrels the year previous under a tariff 
of $1.54 per barrel, show a falling off of about 10 per cent, all of which 
we believe to be the direct effect of the abrogation of the reciprocity 
treaties with the above countries, and to the same cause we attribute 
the fact that France, Belgium, and Germany have all since put a dis- 
criminating and prohibitive duty on American flour, being 21 cents to 
$1.06, 38 cents and 77 cents per barrel, respectively. 

3. We are heartily in favor of a general law being passed authorizing 
the President to negotiate reciprocity treaties with foreign countries, 
for having already been tried and proven successful, as the record of 
the steady increase in our foreign business during the short period 
which the previous reciprocity law was in effect will show, we believe 
this to be the most practical, effective, and desirable way to open the 
markets of the world to our products. 

4. Not alone are the high tariffs imposed upon our flour by most con- 
tinental countries our only grievance, but the fact that, with the excep- 
tion of Great Britain, Holland, and Denmark, they practically all have 
discriminating duties against our flour, compared with our wheat, being 
thus enabled to buy our wheat, manufacture into flour, and sell in their 
own markets at prices we can not compete with. 

Under our present laws, we do not see that we are in a position to 
gain much by diplomatic negotiations with these countries, considering 
their avowed policy of discrimination, but backed by a general reciproc- 
ity law, coupled with a suitable retaliatory measure, we think they could 
be speedily brought to realize the injustice of their present attitude and 
cease their discrimination against our flour, which we consider to be of 
the most vital importance to the milling industry of the United States. 
Yours, truly, 

L. E. Wilson, Secretary. 



Scranton Board of Trade, Scranton, Pa. 

Dear Sir : As the next meeting of this body will not be held until 
April 20, it was thought advisable to forward you a copy of the follow- 
ing resolution, that will be offered at that meeting for favorable con- 
sideration, to wit: 

Resolved, That the repeal of the reciprocity arrangement in the tariff act of 1894 
had a bad effect on business in general, and that, in our opinion, reciprocity is a good 
thing for this country, aud the application of it in future legislation would be advis- 
able. Signed, H. E. Paine, chairman committee on legislation and taxes. 

Eespectfully, yours, D. B. Atherton, Secretary. 



RECIPROCITY STATEMENTS. 175 

Report to the Galveston Chamber of Commerce of committee appointed on 
the 19th of March regarding reciprocity treaties. 

Whereas we believe that the true essence of all commercial inter- 
course is an exchange of native products; 

Whereas we believe that all commercial relations with foreign nations 
should be based upon reciprocity, and especially those with American 
Republics; 

Whereas under existing circumstances the United States enjoys 
only a small percentage of the commerce of American countries that 
should be ours from our natural position, for want of equitable com- 
mercial treaties: 

Be it resolved, That we, the Galveston Chamber of Commerce, as a 
body, heartily indorse the idea of equitable reciprocity treaties and 
believe it is the fundamental principle of commercial relations with all 
friendly nations, and especially with all American Republics. 

Therefore, we respond to your questions as follows: 

First. Was the effect of the reciprocity arrangements negotiated by 
the Government with certain foreign nations under the tariff act of 181)0 
favorable or unfavorable to the foreign commerce of the United States? 

Answer. Incomplete as they were, very favorable, and would have 
been far more beneficial had we had American ships to handle the busi- 
ness, thereby retaining the millions of dollars freight money. 

Second* What was the effect of their repeal by the tariff act of 1894? 

Answer. Disastrous to all interests that had embarked in the business, 
owing to the repeal of the treaty without notice, thereby entailing heavy 
losses on them caused by their expenditures necessarily incurred in 
preparing to do the business. 

Third. Is it expedient and advisable to apply the reciprocity prin- 
ciple to future tariff legislation and to enact a general law authorizing 
the President to negotiate reciprocity treaties with foreign nations as 
far as possible? 

Answer. Emphatically, yes. We believe that reciprocity is the only 
true principle of commercial intercourse with friendly nations. 

Fourth. What can be accomplished by diplomatic negotiations in 
extending the export trade of the United States? 

Answer. We believe diplomatic channels are the only means of 
accomplishing these ends. 

Gus. Re y:\iershoffer, Chairman. 
Arthur B. Hosier, 
B. I. Gatjtier, 

Committee. 



Tobacco Board of Trade , Clarlcsville. Tenn. 

Your communication of 4th ultimo was laid before our board at its 
last monthly meeting, and I was instructed to reply to your questions, 
first, second, third, and fourth, giving as opinion of the board — 

First. The reciprocity arrangements with other governments were 
decidedly favorable to our foreign commerce. 

Second. The repeal of these features by the tariff act was unfavorable. 

Third. It is expedient and very advisable to apply the reciprocity 
principle to future tariff legislation, and recommend a general law 
authorizing the President of these United States to negotiate reci- 
procity treaties with all foreign nations, and to make it the duty of our 



176 RECIPROCITY STATEMENTS. 

ministers to foreign governments to bring fully before them the desire 
of our Government to form such treaties with them, believing that such 
treaties are beneficial to both parties of same, in the way of larger 
exchange of the products of the countries, and tend to closer friendly 
relations between us and the various peoples of the globe, for the sails 
of our merchant marine are "the white wings of peace." Trading 
peoples do not willingly quarrel with their customers. 

The board has not felt it necessary to go into the statistics to show 
the advantages of reciprocity treaties, as you have no doubt those before 
you. As tobacco is our staple, and this is the Tobacco Board of Trade, it 
respectfully calls your attention to the fact that Great Britain collects 
a duty of 76 cents per pound on tobacco shipped from here to that 
country, costing here 5 cents per pound. Great Britain could reduce 
her duty to 40 cents per pound with gain to her revenue (as shown by 
the record of reduction of tobacco tax under our internal-revenue 
system) and great benefit to her poorer population, and the increased 
consumption would benefit the American tobacco planter, now much 
oppressed by the foreign duties. 

Fourth. Great good can be accomplished by diplomatic negotiations 
for the extension of our foreign trade. 

Very truly yours, M. H. Clark, 

Secretary Tobacco Board of Trade. 



The New York Board of Trade and Transportation. 

At the regular monthly meeting of the New York Board of Trade and 
Transportation held December 11, 1895, the following resolution was 
unanimously adopted : 

THE EXTENSION OP AMERICAN EXPORT TRADE. 

Be8olved, That, in the opinion of the New York Board of Trade and Transportation, 
the present year marks an epoch in commercial history; that the present is a time 
worthy of the best efforts of our producers, manufacturers, and merchants to extend 
the export trade of the United States, and that these efforts should be supported by 
a wise and progressive policy on the part of our Government. The principle of reci- 
procity should be recognized in our diplomacy ; our consular service be controlled 
by civil-service rules and adequately compensated, and our carrying trade be fostered 
as far as possible by liberal pay for the carriage of mails on the ocean as well as on 
land. 

Darwin R. James, President. 



N"ew York Chamber of Commerce. 

Resolved, That, in the opinion of this chamber, the present year marks 
an epoch in commercial history ; that the present is a time worthy of the 
best effort of our producers, manufacturers, and merchants to extend the 
export trade of the United States, and that these efforts should be sup- 
ported by a wise and progressive policy on the part of our Government. 
The principle of reciprocity should be recognized in our diplomacy; our 
consular service be controlled by civil-service rules and adequately com- 
pensated, and our carryiug trade be fostered as far as possible by liberal 
pay for the carriage of mails on the ocean as well as on land. 



RECIPROCITY STATEMENTS. 177 

Henry D. McCord, President New York Produce Exchange. 

In response to the request for an expression of my views of the ben- 
efits to be derived from the reestablishment of reciprocity treaties, I 
beg to say that in my position as president of the New York Produce 
Exchange (a body of 3,000 merchants and business men), I come in con- 
tact daily with a great number of the representative members, and 
understand their views pretty well on questions of business importance, 
and while no public meeting has been held on the subject of restoring 
reciprocity, I can safely say that two-thirds of the membership are in 
favor of it. 

The short trial given reciprocity produced satisfactory results. Dur- 
ing the time the treaties were in force the exports of produce and pro- 
visions increased more than threefold to all the countries with which 
such arrangements existed, and upon the abrogation of the treaties the 
volume of exports fell back to their present small proportions. 

It is not only to the Produce Exchange that the benefits of reciproc- 
ity were made manifest. The commerce of the ports in the South and 
those of the Gulf were greatly benefited, while the farmer, the miller, 
the packer reaped their share of its benefits through the large increase 
in trade with countries with which close and friendly trade relations 
had been established. 



Board of Trade, Tupelo, Miss. 

Dear Sir : In reply to your circular letter of the 4th instant I am 
instructed to say briefly : 

That reciprocity treaties are nothing but limited free trade, and those 
under the law of 1890 were very favorable to the foreign commerce of the 
United States. That it is due to high' protective tariffs maintained by 
our Government for the last thirty years that we have had very little 
trade with the Eepublics in the Western Hemisphere, when by proper 
legislation we might have had nearly the whole trade. 

2. What was the effect, etc. ? 

The fact was to stay reciprocity relations, and the effect was an injury 
to our trade, of course. 

3. No. Eeciprocity trade relations are wrong in principle. The osten- 
sible purpose is for a partial free trade, but the real purpose is, when 
our manufacturers have protection by a high tariff, for the Government, 
in the interest of these very manufacturers, to open the doors of com- 
merce to them only. 

4. Nothing; absolutely nothing. Have no protective tariff; levy a 
tariff for revenue only. Of course we must have revenue. The best 
and about the only diplomacy that will capture the trade of a foreign 
state is to admit as free of duty and tonnage as possible the goods and 
vessels of such foreign state or nation. 

Very truly, 

H. C. Medford, Secretary. 



Northern New York Millers 7 Association, Watertown, N. Y. 

Dear Sir: 1 write you in order to urge the necessity of passing at 
this session of Congress H. E. bill 3212. If this is not done the relief 
it might afford the milling interests of this country may perhaps be 

H. Rep. 2263 12 



178 RECIPROCITY STATEMENTS. 

delayed two years or more. It is needless to remind you that, relying 
upon an export trade, the milling- capacity of this country far exceeds 
the requirements for home use. Owing to discrimination of the tariff 
of the Eastern Hemisphere against flour and in favor of wheat much 
of our wheat is exported to be ground and put in competition with the 
American -milled product. 

Yours, truly, E. W. Herrick, Secretary. 



Chamber of Commerce, Pittsburg, Pa. 

To the Ways and Means Committee of the House of Representatives, 
Washington, D. C: 

The chamber of commerce in this city, in response to your courteous 
invitation, desires to submit the following as its judgment in the mat- 
ter of establishing closer commercial relations between this country 
and Mexico and the Central and South American States, known as 
" reciprocity." 

At no time in the history of our country has a commercial question 
of equal importance presented itself. We have reached a point in 
both manufactures and agriculture so great that (call it overproduc- 
tion or whatever else you please) we can not consume our output, and 
the necessity of finding new markets is an imperative one. At this 
juncture of affairs the acts of 1890, providing for enlarged traffic with 
our Spanish-American Bepublics, came into existence most opportunely 
for all parties in interest. 

Orders at once began to pour into this country for supplies that had 
for a century or more been purchased in Europe. Shipments to our 
neighboring republics, which had been merely incidental, now expanded 
rapidly, and promised to become an integral part of our commerce. 

At once a large and remunerative traffic came to our doors, reaching 
in value some $25,000,000 in exports alone from our country, as an ini- 
tial effect of the new treaties. 

These treaties were no sooner abrogated than an almost total sus- 
pension of commercial relations followed, and have never been revived. 

Eeciprocity legislation, which promised such excellent results, was 
pulled up by the roots before the plan was fully in operation. No pos- 
sible excuse can be offered for so wanton and mischievous a course. 
It was simply partisan politics run mad. 

From a most reliable source we have information that orders from 
Central and South America to the city of Pittsburg, in amount of over 
$200,000 per month, were canceled at once on repeal of the reciprocity 
laws, and a similar condition of affairs, it is fair to presume, prevailed 
in other manufacturing communities. 

It is an imperative necessity that we should have new markets for 
our overgrown productions, and what customers are more desirable 
than those at home? None whatever. Next to our own, we find our 
American neighbors bound to us by political ties of the closest charac- 
ter, and, more than all, a strong desire on the part of the people to 
become customers through a system of reciprocal value to all parties. 

To sum all up briefly and not weary your patience, we beg to remind 
you in this purely commercial question " that good business is good 
politics," and to insure that prosperity to the business interests of the 
country which it requires, we most urgently request that to this end 
you reestablish, without delay, such laws as will restore reciprocal 



RECIPROCITY STATEMENTS. 179 

trade relations with all nations on the continents of North and South 
America. 

Added to this, cheap and continuous water transportation to the sea- 
board will enable us to compete with the world for this traffic, without 
the necessity of compelling American workingmen to toil at the pauper 
wages paid European labor. 

The consensus of judgment and expression of all commercial bodies 
in all sections throughout the land, without exception, ought to be suf- 
ficient to justify your speedy and thorough action in restoring reciproc- 
ity, and give to the commerce of the United States an even chance to 
compete with foreign nations. 



Merchants' and Business Men's Association of Chester, Pa. 

Whereas a bill is now pending in the House of Representatives at 
Washington, D. C, looking forward to the establishment of reciprocal 
trade between this and other nations: Therefore, 

Resolved , That the Merchants' and Business Men's Association ot 
Chester, Pa., do indorse and sustain the principle of reciprocity. 

D. W. Deakyne, President. 
M. L. James, Secretary. 



Semi-Tropic Fruit Exchange, Los Angeles, Cal. 

April 1, 1896. 

We have your favor of March 4, and submitted the same to a meet- 
ing of our directors, held yesterday, March 31, and think they were 
unanimous in the subjects your favor outlines, as follows: 

First. The effect of the reciprocity arrangements negotiated by the 
Government with certain foreign nations under authority of the tariff 
act of 1890 was favorable. 

Second. The effect of their repeal was bad. 

Third. We believe that it is expedient and advisable to apply the 
reciprocity principle to future tariff legislation, and to enact a general 
law authorizing the President to negotiate reciprocity treaties with 
foreign nations so far as possible. 

Fourth. We believe that a protective tariff will accomplish more in 
extending the export trade of the United States. 
Yours, truly, 

J. A. Re id, Secretary. 



The Chamber of Commerce of Pensacola. 

PENSACOLA, FLA., April 4, 1896. 
Hon. A: J. Hopkins, 

Washington, D. C. 
Sir: Your circular letter dated 4th ultimo, as chairman of subcom- 
mittee on reciprocity and commercial treaties, was submitted to our 
chamber at its monthly meeting, held on 2d instant, and 1 was directed 
to reply to the various queries, as follows : 
1. Yes; very favorable. 



180 RECIPROCITY STATEMENTS. 

2. We think it was injurious. 

3. Yes. 

*4. If properly directed, much may be accomplished. 
Yours, very truly, 

Thos. O. Watson, Secretary. 



Duluth Jobbers 7 Union, Duluth, Minn. 

Dear Sir : Eelative to the circular of March 4, issued by the subcom- 
mittee on reciprocity and commercial treaties, our answers to the differ- 
ent clauses are as follows : 

First. Favorable. 

Second. Detrimental. 

Third. Yes. 

Fourth. A judicious selection of consular agents to disseminate trust- 
worthy information as to the requirements of their special locality. 

W. Buchanan, Secretary. 



Commercial Club, Velasco, Tex. 

The Yelasco Commercial Club unanimously and most heartily favors 
reciprocity with the South American Republics, and believes that this 
would be of incalculable benefit to this entire country, more than any- 
thing else that can be brought about, in a commercial way, in the United 
States for the next fifty years — reciprocity of trade with the South 
American Eepublics. 

W. W. Anderson, Secretary. 



American Paper Makers 9 Association, New York, N. Y. 

Dear Sir : Referring to your recent courteous request as to our views 
upon the proposition now before your honorable committee, looking 
toward the reestablishment of reciprocal relations with other countries, 
through commercial treaties, and as to our experience and views as to the 
practical results secured to this country during the operation of the for- 
mer reciprocity treaties, 1892 to 1894, we have to say that we have always 
felt that reciprocity commended itself as a business principle, and that 
if it were given a fair trial in the administration of our affairs and 
placed upon a sound basis, and adopted as one of the leading princi- 
ples of our Government, it must soon result in materially enlarging 
our foreign trade, under most favorable conditions. 

This was clearly shown by the rapid development of our trade with 
the South American Republics, which followed the establishing of 
reciprocal relations with these countries in 1891, through the able 
efforts of Secretary Blaine, and which grew from $90,000,000, in 1892, 
to $104,000,000, in 1893, and in which extension of trade, the paper 
industry, which we represent, was very much benefited; and its efficacy, 
as a principle, in dealing with these countries, was shown specially by 
the fact that, in 1895, after the repeal of the reciprocity treaties, our 
exports to these same countries fell off to $87,000,000, the lowest point 
reached for many years. 



RECIPROCITY STATEMENTS. 181 

Let reciprocity be established as the governing policy of our people, 
and easy access to these countries be established by regular steamship 
connections and proper banking facilities, and we are confident our 
trade with these countries alone would soon reach $200,000,000. 

All the correspondence and reports from our consular service in these 
countries have made it clear that the people of these countries would 
prefer to have close commercial relations with this country rather than 
with European nations. 

It would also serve, in a special sense, to establish more cordial and 
permanent relations between ourselves and these countries, and go very 
far to bring about a general appreciation of the many strong qualities 
which have made our own country conspicuous as the leading commer- 
cial Eepublic of this hemisphere. 

We sincerely trust that early steps may be taken, both to reestablish 
the reciprocal relations with all South American Republics, and to 
extend these relations to the other great nations of Europe. 

Edw. H. Haskell, 

K. B. FULLERTON, 

A. G. Paine, Jr., 
W. H. Rusons, Jr., 
J. Fred Ackerman, 
Committee on Export, American Paper Makers' Association. 



Board of Trade, Columbus, Ohio. 
On motion of O. D. Firestone, the following was adopted: 

Whereas a subcommittee of the Ways and Means Committee of the Fifty-fourth 
Congress has under consideration a "bill to secure better markets for grain, grain 
products, meats, and all manufactured products of the United States; and 

Whereas it is for the best interests of the business man, farmer, manufacturer, and 
wage earner to sell as many of our products in foreign countries as possible: 
Therefore, 

Be it resolved, Thatthe Columbus Board of Trade, representing 500 members, heartily 
indorse such a measure, believing that the passage of such a bill, having the proper 
safeguards thrown around it, empowering the President of the United States to 
enter into reciprocal treaties with countries from which we purchase goods, enabling 
this country to settle its balances in its own products instead of paying in gold, 
would be infinitely to the advantage of all our people, and we earnestly request our 
Senators and Representatives in Congress to use their efforts to secure the passage of 
such a bill. 

Resolved, further, That a copy of these resolutions be forwarded by the secretary 
of this Board of Trade to our Senators and Representatives in Congress. 



North Adams (Mass.) Board of Trade. 

The following resolution was adopted last night by the ^orth Adams 
Board of Trade without a dissenting voice: 

Whereas during the period that reciprocity was practiced in this country we 
enjoyed not only the most marvelous prosperity that ever came to any country, but 
our relations with other countries were closer, more amicable, and gave promise of 
broader and better association; 

Whereas since a change of Administration has been the cause of a suspension of 
those peaceful and profitable relations, the people of this locality, with the country 
at large, have suffered financially aud to the harm of agricultural and manufacturing 
pursuits: 

Resolved, That it is the opinion of the North Adams Board of Trade that Congress 



182 RECIPROCITY STATEMENTS. 

should take immediate action looking toward the resumption of reciprocity with all 
nations "where mutual advantage will result most beneficially to the welfare of the 
people. 

It was also the wish of the Board of Trade that in forwarding the 
resolutions to your committee mention should be made of the fact that 
they were the expression of the representative organization of a locality 
which is peculiarly representative of both manufacturing and agricul- 
tural interests. For it is doubtful if there is another spot in the United 
States where are more conspicuously combined a great variety of man- 
ufacturing industries (including the manufacture of cotton and woolen 
goods and boots and shoes) with unusually diversified and important 
agricultural interests than this section of western Massachusetts and 
southern Vermont, of which our city is the central point. 

We mention this in the hope that it may be of service to your com- 
mittee. A copy of a paper containing a full report of the meeting at 
which the resolutions were adopted is also sent to you. 
Very respectfully, 

E. S. Wilkinson, 
President North Adams Board of Trade. 



TJie Commercial. Club, of Newton, Kans. 

Sir: In response to your inquiry of March 4, we have to say that at 
a meeting of the Commercial Club of this city, held April 15, 1890, the 
unanimous opinion of the club was — 

1. The effect of the reciprocity arrangements negotiated by the Gov- 
ernment under the act of 1890 was highly favorable to the foreign 
commerce of the United States. 

2. That the effect of the repeal of the tariff act of 1891 was very 
disastrous. 

3. It is certainly expedient and advisable to apply the reciprocity 
principle to future tariff legislation. 

1. That by diplomatic negotiations the export trade of the United 
States can be greatly extended and the condition of our farmers greatly 
benefited thereby. 

J. C. Nicholson, President. 



Kansas Millers 1 Association. 

Dear Sir: Referring to your communication, which has been placed 
before our executive committee, beg to advise as follows, questions in 
order : 

1. Very favorable, as far as we were concerned. 

2. Think it was a detriment to the milling industry. 

3. Yes; by all means. I think the only and effectual improvement 
will be through reciprocity. 

1. I think that we can voice the sentiment of all the association that 
such a bill will do more to extend our export trade and revive our old- 
time prosperity than any action taken in a long time. 
Very respectfully, 

E. A. Colburn, President. 



RECIPROCITY STATEMENTS. 183 

Philadelphia Board of Trade. 

Sir: Referring to your communication addressed to the president of 
the Philadelphia Board of Trade under date of March 4, 1896, in which 
you asked for an expression of views upon four questions therein stated 
relating to reciprocity arrangements and commercial treaties, I am 
instructed by the executive council of the Board of Trade to answer the 
questions as follows: 

1. Was the effect of the reciprocity arrangements negotiated by the 
Government with certain foreign nations under the authority of the 
tariff act of 1890 favorable or unfavorable to the foreign commerce of 
the United States? 

Answer. The statistics of the United States Government show that 
the reciprocity legislation as enacted in the McKinley tariff act pro- 
duced a most favorable effect upon our foreign trade. 

2. What was the effect of their repeal by the tariff act of 1894? 
Answer. Most disastrous. Our export trade to the countries which 

had reciprocal treaties has been radically reduced. 

3. Is it expedient and advisable to apply the reciprocity principle to 
future tariff legislation, and to enact a general law authorizing the 
President to negotiate reciprocity treaties with foreign nations, so far 
as possible? 

Answer. The reenactment of the McKinley tariff act with its reci- 
procity clauses would be beneficial to the country. 

4. What can be accomplished by diplomatic negotiations in extend- 
ing the export trade of the United States? 

Answer. ^Nothing desirable without such legislation as is stated in 
the foregoing. 

I remain, sir, yours, truly, 

W. E. Tucker, Secretary. 



The Commercial League, Fort Smith, Arlc. 

Dear Sir: At a meeting of the Fort Smith Commercial League, held 
last night, your reciprocity bill now before Congress was fully dis- 
cussed and unanimously indorsed. I was directed to inform you of the 
action of the league, and also to request the Senators and Eepresenta- 
tives in Congress from Arkansas, in the name of the league, to aid you 
all they can in securing the early passage of the bill. 
Yours, very truly, 

E. H. Adair, Secretary. 



Boston Chamber of Commerce. 

Dear Sir: Tour valued favor of March 4, requesting the opinion o^ 
this body on the matter of reciprocity arrangements and commercial 
treaties, has been duly considered by our board of directors, and I am 
instructed by them to reply to your inquiries as follows: 

1. In the opinion of the board, the effect of the reciprocity arrange- 
ments negotiated by the Government under the authority of the act of 
1890 was favorable to the foreign commerce of the United States. 

2. That their repeal resulted, in many cases, in the severance of com- 
mercial relations that had been entered into under the influence of the 
reciprocity treaties, and was, therefore, a distinct injury to trade. 



184 RECIPROCITY STATEMENTS. 

3. In the opinion of the board it is expedient and advisable to apply 
the reciprocity principle to future tariff legislation. 

4. It is the opinion of the board that the foreign commerce of the 
United States can be greatly furthered and extended through the 
efforts of our diplomatic representatives abroad, and that, when assisted 
by reciprocity arrangements, our representatives can render much more 
efficient service in this respect than when no such arrangements exist. 

I am, sir, very respectfully, yours, 

E. G. Preston, Secretary. 



The Minneapolis Board of Trade. 

Whereas the Subcommittee of the Committee on Ways and Means of 
the House of Representatives at Washington, D. 0., desires an expres- 
sion of the views and opinions of the commercial and industrial organi- 
zations of the United States regarding the effect of the reciprocity 
arrangements negotiated under authority of the tariff act of 1890, the 
effect of its repeal in 1894, and the advisability of applying the reci- 
procity principle to future tariff legislation : Therefore, be it 

Resolved by the Minneapolis Board of Trade, That it is the sense of 
this board that the effect of the reciprocity arrangements by the Gov- 
ernment of the United States with foreign nations fully justified the 
views of the eminent but now lamented statesman who gave them 
birth. 

That we believe the reciprocity principle may in many cases be wisely 
applied to further legislation. 

That, above all, we believe a national nonpartisan tariff commission 
should be established and constantly maintained, whose duty it should 
be to make most careful, systematic, and thorough study of the whole 
tariff question with a view to the gathering of such information as will 
enable it to recommend to Congress the enactment of tariff laws based 
upon scientific and righteous principles. 

We also believe a nonpartisan national finance commission should 
be established and constantly maintained, whose duty it should be to 
thoroughly study the currency and finance systems of the different 
nations with a view to the making of such recommendations to Con- 
gress as shall result in the enactment of laws which shall secure to 
this country a thoroughly sound but flexible currency and a system of 
finance which shall not be subject to manipulation by speculators or too 
much dependent upon the judgment of persons who may be chosen or 
appointed to Government offices for which they may be unfitted because 
of natural disqualifications or previous inexperience. 

Furthermore, we deprecate and desire to strongly denounce the un- 
businesslike and thoroughly unpatriotic methods apparently pursued 
by many members of both Houses of late Congresses who have seemed 
willing to make and unmake, almost at raudom, laws which seriously 
affect the business interests of the entire country — all in order that the 
interests of themselves or their respective parties may be the better 
subserved. 

We believe the time has come when the people of this country should 
assert with no uncertain sound that their representatives in Congress 
should be less subservient to party behests and more willing to concede 
reasonable differences, in order that harmony may prevail and this 
nation be given such sound and business-like legislation as shall main- 
tain its position at the head of the nations of the earth. 



RECIPROCITY STATEMENTS. 



185 



Resolved, That a copy of this resolution be sent to the chairman of 
the Subcommittee of the Committee on Ways and Means, and also to 
the Senators and Congressmen from Minnesota, as well as to such 
boards of trade or commercial bodies as the president and secretary of 
this board shall see fit. 
Eespectfully submitted, 

J. U. Barnes, Chairman, 
J. T. Wyman. 

A. R. McGill. 
O. E. NAEaLE. 

B. J. Kelsey. 



The National Live Stock Exchange, Chicago. 

Dear Sir : I have the honor in behalf of the executive committee of 
this exchange, in response to your inquiries of March 23, to hand you 
herewith a copy of the questions asked by you, and, immediately follow- 
ing, the answers of this exchange, as far as possible, thereto. 

1. Give, if possible, the present total number of beef cattle in the 
United States compared with that of six years ago, and the decrease 
and increase annually. 

Answer : 



Year. 


Number of 
cattle. 


Increase-t- 
or 
decrease—. 


1891 


36, 875, 648 

37, 651, 239 

35, 954, 196 

36, 608, 168 
34, 364, 216 
32, 085, 409 




1892 


+ 775,591 
—1, 697, 043 


1893 


1894 


+ 653,972 
—2, 243, 952 
—2, 278, 807 


1895 


1896 





2. What is their value per head compared with six years ago, and 
how has that value on the ranch varied during the last six years'? 

Answer. According to the trade paper of this market, The Daily 
Drovers' Journal, export cattle weigh from 1,300 to 1,500 alive on an 
average. Such cattle sold in the Chicago market as follows: 



Per 100 pounds. 

1890 $3.75<@$5.75 

1891 3.70© 6.25 

3.90© 5.60 



Per 100 pounds. 

1893 $4.00®$5.45 

1894 3.75® 6.25 

1895 3.80® 5.50 

3. What causes other than the disturbance of our foreign trade by 
the repeal of the reciprocity treaties and the restrictions imposed by 
foreign countries have affected the profits and the growth of the cattle 
trade? 

Answer. The general depression which has prevailed in all lines of 
business during the past two years and the comparatively low prices 
for other commodities has had something to do with the decline in 
prices for cattle and beef, but we attribute the main trouble to the 
repeal of reciprocal relations. 

4. Give, if possible, the number of cattle annually exported on the 
hoof during the last six years by countries. 



186 
Answer : 



RECIPROCITY STATEMENTS. 



Tear. 


To United 
Kingdom. 


To France. 


To Ger- 
many. 


To Holland 

and 

Belgium. 


To other 
countries. 


Total. 


1890 


360. 589 
345, 797 
378, 167 
280, 996 
345, 734 
305, 068 


369 

5,885 

845 

None. 

5,184 
10, 538 


3,977 
5,223 
4, 643 
419 
3,069 
6,436 


7,263 
7,303 
3,423 
1,440 

1,865 
4,780 


22, 638 
10, 471 
7,529 
4,239 
3,426 
4,900 


394, 836 
374 679 


1891 


1892 


394 607 


1893 


287 094 


1894 


359, 278 
331, 722 


1895 





5. Explain the variations in export prices for cattle on the hoof dur- 
ing the last six years. 

Answer. The variations in prices of export cattle was largely caused 
by the prices paid in London for skine, which were as follows: 

1890 8i<3> 13 c. (sinking offal) 

1891 11 <® 13ic f sinking offal) 

1892 lOJ© life, (sinking offal) 

1893 10 feb 14 c. (sinking offal) 

1894 8£ <® 12fc. (sinking offal) 

1895 9 <2> 13ic (sinking offal) 

See also answer to second interrogatory. 

6. Has there been any change in the cost of transportation and other 
expenses of getting them to market 1 ? The object of these questions is 
to ascertain the value of American cattle in the market of the consumer 
to-day compared with that of six years ago. 

Answer. This is a question that it is impossible for us to answer from 
any data in our possession as there have been numerous changes in 
freight rates and undoubtedly a great many private contracts with 
transportation companies of which we have no definite knowledge. 

7. Give, if possible, the number of cattle annually slaughtered in this 
country, with the proportion sold in the carcass and the proportion 
cured and packed. 

Answer. The Government reports for the calendar year 1894 show that 
there were 36,608,168 cattle, other than she cattle, in the United States. 
The Cincinnati Price Current for the same calendar year shows that 
there were 420,835 head of cattle exported alive. It is proper to estimate 
that other cattle besides beef cattle would be 18,090,000 head, leaving 
the total number of beef cattle in the United States of 18,090,000 head, 
which were slaughtered in this country in the calendar year of 1894, 
which at an average of 700 pounds to the carcass would give 12,663,000,- 
000 pounds, of which 204,314,960 pounds were exported in the carcass, 
which would leave 12,458,685,040 pounds of beef, of which 64,645,166 
pounds were cured, packed, and exported, and 59,524,794 pounds were 
canned and exported, leaving 12,334,515,080 pounds of fresh, cured, 
packed, and canned meat for home consumption for the calendar year 
1894. In this answer we have necessarily had to make an estimate of 
some of the figures submitted, hence only furnish figures for one year. 
The estimates used would hold equally good for any other year, and the 
results of any particular year could readily be ascertained by using the 
foregoing estimates in connection with the Federal statistics for such 
year. 

8. The amount of capital and number of men employed and the 
amount of money disbursed annually in curing and packing beef and 
other preserved meats? 

Answer. This question we consider as being foreign to the live-stock 
business, and we are unable from data in our possession to formulate a 
comprehensive answer. 



RECIPROCITY STATEMENTS. 



187 



9. The proportion of cured and preserved meats exported and the 
proportion consumed in the United States'? 

Answer. Our answer to interrogatory No. 7 gives the figures for cured 
and preserved meats exported. We have no statistics at hand show- 
ing the amount of preserved and cured meats consumed in this country. 

10. The proportion of beef in the carcass exported and the propor- 
tion consumed in the United States? 

Answer. We respectfully refer to our answer to interrogatory No. 7 
for an answer to this question. 

11. What effect did the reciprocity arrangement have upon the export 
trade in both fresh autf cured and packed beef? Please give this infor- 
mation by countries as far as possible. 

Answer: 

Exports of fresh beef to countries indicated, compiled from the United States Treasury 

statistics. 



Year. 



1891 
1892 
1893 
1894 
1895 



To United 
Kingdom. 



Pounds. 
171, 032, 579 
192.456,458 
219, 103, 267 
205, 911, 093 
193, 331, 292 
190, 736, 186 



To France. 


To Ger- 
many. 


To Holland 

and 

Belgium. 


To other 
countries. 


Poinds. 
ione. 


Poun ds. 


Pounds. 


Pounds. 


None. 


2,400 


2, 202, 617 


None. 


None. 


None. 


1, 589, 180 


None. 


None. 


None. 


1, 451, 350 


None. 


None. 


None. 


383, 631 


None. 


1,066 


None. 


559, 466 


None. 


239, 750 


None. 


272, 551 



Totals. 



Pounds. 
173, 237, 596 
194, 045, 638 
220, 554, 617 
206, 294, 724 
19:J, 891, 824 
191, 338, 487 



12. What was the falling off in the trade and the general result of 
the repeal? 

Answer. The falling off in the trade is indicated in our answer to the 
preceding interrogatory, and resulted in a demoralizing effect upon our 
industry by forcing our surplus on already overburdened markets, 
largely owing to the prohibitive edicts of certain foreign countries 
placed thereon. 

13. Please give a brief summary of the obstacles that exist to the 
extension of our export trade in both fresh and cured and packed beef 
by countries. What restrictions are offered in Germany, in England, 
in France, etc. ? 

Answer : 

Gei'many. — Imperial order prohibiting the importation of cattle and fresh beef from the 
United States — Proclamation of the senate — Proclamation relating to the prohibition 
of the importation from America of living beef cattle and fresh beef. 



[Translation.] 

No. 111.] Saturday, October 27, 1894. 

The imperial chancellor, on the strength of paragraph 4, page 2, of the imperial 
law of June 23, 1880, concerning protection against and suppression of cattle dis- 
eases, after the arrival here, of two shipments of American cattle containing sick 
animals, and after the certification hy the imperial health office that the sickness is 
" Texas fever," has ordered the prohibition of the importation from America of living 
beef cattle and fresh meat. On the strength of paragraph 7 of the said law it is 
therefore ordered that — 

The importation of living beef cattle and fresh beef from America is forbidden. 
The importation will, nevertheless, be permitted of such shipments as have left 
America before and including the 28th instant. The cattle the importation of which, 
according to the^bove provision, is still to be permitted must, however, be slaugh- 
tered at once in the slaughterhouse at this place. 

Offenses against this prohibition will, according to paragraph 66 of the imperial 
law concerning protection against and snppresion of cattle diseases, be punished 
with a fine up to 150 marks, or arrest, in so far as no greater penalty is prescribed 



188 RECIPROCITY STATEMENTS. 

by law. In addition to this punishment, the cattle or fresh meat imported in con 
travention to this prohibition will be confiscated, whether the cattle or meat belong 
to the offender or not. 

Given at the session of the senate, Hamburg, October 26, 1894. 

France. — Ministerial order of February 24, 1895, prohibiting the importation of cattle 

from the United States. 

[From the Journal Official de la Kepublique Francaise, February 25, 1895, p. 1074.] 

The Minister of Agriculture: 

Pursuant to the law of July 21, 1881, on the sanitary police regulations regarding 
auimals, and the decree of June 22, 1882, relating to the regulations for the public 
administration for the observance of the same; 

In view that there are many contagious diseases which do not exist in France but 
prevail among the cattle in the United States of America, cases having been found 
among animals imported from that country into Europe, it is only reasonable that 
measures be taken to prevent the introduction of these diseases into our territory, 
and having the opinion of the consultative committee on epizootics, and on the 
report of the counsellor of state, director of agriculture — 

Resolved: 

Article 1. The importation into France and the transit of cattle coming from the 
United States of America over our land and sea frontiers is interdicted until other- 
wise ordered. 

However, cattle sent from the United States before February 24, 1895, shall be 
admitted providing they be landed under the conditions prescribed by law for the 
admission of foreign cattle. 

Art. 2. Prefects of departments are charged, each as it eoncerns him, with the 
execution of this decision. 

Done at Paris, February 24, 1895. 

Gadaud. 

Belgium. — Ministerial order of December 29, 1894, prohibiting the importation of cattle 

from the United States. 

[Translation.] 

Ministry op Agriculture, Industry, Labor, and Public Works. 

Bovine animals coming from the United States of America. Importation prohibited. 

The minister of agriculture, industry, labor, and public works, considering the 
law of the 30th of December, 1882, on the sanitary police of domestic animals, as well 
as the general administration regulation of the 20th of September, 1883, adopted in 
execution of this law ; considering, again, the ministerial order of the 25th of August, 
1894, subjecting to a quarantine of forty-five days animals of the bovine species 
shipped from the United States of America, contagious pleuro-pneumonia having 
been discovered among animals of this origin ; considering that the same contagious 
affection was discovered on the 25th of December, 1894, in two animals shipped from 
the aforesaid country, and disembarked at Antwerp on the 17th day of the same 
month; considering the advice of the veterinary inspection service, orders: 

Article 1. The importation and transit of animals of the bovine species coming 
from the United States of America are interdicted until ulterior disposition. The 
direct transit of these animals can be made by railway only, and in sealed wagons, 
and without being unloaded en route. 

Art. 2. By exceptional measure animals of the origin indicated in the preceding 
article in course of shipment before the 2d day of January, 1895, may be disem- 
barked at Antwerp, under the condition of being subjected in the port of that city 
to a quarantine of forty-five days at least, or may be directed toward a public 
slaughterhouse, to be there butchered in the delay provided for by the regulation 
dispositions. 

Art. 3. The order above referred to of the 7th of December, 1894, is repealed. 

Leon de Bruyn. 

Brussels, December 29, 1894, 



RECIPROCITY STATEMENTS. 189 

Denmark. — Decree regarding the prohibition of the importation of live cattle and fresh 
meats of the same from America. 

[Translation.] 

With reference to the act of April 14, 1893, No. 14, regarding contagious diseases 
among domestic animals, in order to prevent the importation of Texas fever, which 
is prevalent in America, it is hereby prohibited to import into this country from the 
continent named any live cattle or fresh meats of the same. This decree does not 
apply to meats packed in hermetically sealed cans. The decree of February 14, 1879, 
prohibiting the importation of live cattle from the United States of America is 
hereby abrogated. These regulations to take effect at once. Which is hereby pro- 
claimed for the information and guidance of all concerned. 

HORRING. 

Department of the Interior, November 19, 1894. 

14. What specific recommendations have the cattle trade to make 
concerning legislation or diplomatic negotiations for the removal of these 
restrictions? What can Congress and the Secretary of State do to 
extend your trade? 

Answer. If onr executive and diplomatic departments have not the 
power to negotiate with foreign countries to remove unnecessary restric- 
tions and place our commerce on a reciprocal basis, we do most sin- 
cerely urge that Congress at its present session will enact laws ena- 
bling them to negotiate and inaugurate such reciprocal relations, or in 
the event of failure to retaliate in such manner as to them seem most 
wise and expedient. 

15. The committee would be very much interested in knowing, if 
possible, how much British capital is invested in American beef and 
pork industries, and whether such investors could possibly be intiueu- 
tial in securing a removal of the discriminations. 

Answer. There is no doubt that there is a large amount of European 
capital invested in American beef and pork and live-stock industries, 
and no doubt their influence could be secured in an endeavor to remove 
any unnecessary restrictions, but we would consider it inadvisable to 
solicit their influence before placing ourselves in such a position through 
reciprocity as would commend our cause to them and enlist their 
support. 

Very respectfully, 0. W. Baker, 

Secretary. 



APPENDIX GK 



ADDRESSES BEFORE THE COMMITTEE ON WAYS AND MEANS BY 
REPRESENTATIVES OF THE LIVE STOCK INDUSTRY. 



191 



THE LIVE-STOCK INDUSTRY, 



STATEMENT OF MR. S. W. ALLERTON, OF CHICAGO. 

Mr. Chairman and Gentlemen of the Committee: We come 
here to-day to talk to you as nonpartisans and as business men in the 
interest of the live stock growers and the farmers. Eight here it might 
be well to state who we represent and what business we are in. In 
1866 the great stock yards of Chicago were organized. Men came there 
from all parts of the country to sell live stock. Intelligent, farsighted 
men readily saw that Chicago was to be the live-stock center of the 
Northwest. A live-stock exchange was organized, to meet every week, 
and much cattle for foreign and other shipment came to Chicago. Later 
on there was organized an association called the " National Live Stock 
Exchange," with meetings once a year, for the benefit and in the inter- 
est of the live-stock growers of Chicago, Kansas City, Sionx City, Pitts- 
burg, and many other cities interested in this industry. The member- 
ship was some 1,800, and they meet annually to discuss matters relating 
to live stock. At the last meeting of the exchange, in December, it 
was decided unanimously that the National Live- Stock Exchange should 
appoint a committee to come to Washington and talk to this committee 
in behalf of reciprocity in the interest of the live-stock growers. 

EFFECT OF THE RECIPROCITY ARRANGEMENTS. 

After reciprocity was passed and became a law our shipments abroad 
were much larger than they are now, being distributed throughout 
England, Belgium, Germany, France, Sweden, and Norway. After 
reciprocity was repealed our shipments steadily decreased, and have 
experienced a considerable falling off ever since. 

After reciprocity was repealed Germany and France set up that our 
cattle were diseased, and prohibited us from shipping them into their 
countries. The result was that we were able to ship our cattle and 
beef to England only, the only country of any consequence open to us, 
which made a loss of over two and a half million, because we were 
obliged to sell in England at 2J cents per pound, which did not pay for 
the labor, trouble, and expense ; and our shipments, also, to foreign 
parts were of necessity greatly reduced. The cattle in America were 
also greatly reduced in price, and have gone down $1.50 ; because, for 
example, take a country consuming 10,000 head of cattle, and force 
11,000 head of cattle upon that market, and you will not get as much 
for your 11,000 as you would have gotten for your 10,000. 

Eeciprocity enabled us to work off our surplus meat and find a ready 
market for our live stock. But now the farmers in this country are in 
great distress in consequence of all these things. 

Of course, all of you gentlemen probably know more about reciproc- 
ity than we do, but I will state one argument just here in favor of 
having reciprocity restored. You say it will make cheap sugar. Can 
you do anything greater and better than to have cheap sugar for the 
people? Because the bill of the laboring man for groceries is one-half 

H. Kep. 2263 13 193 



194 RECIPROCITY STATEMENTS. 

sugar. Go to any farmer and ask him to give you information about 
his grocery bill, and he will tell you that one-half of it is for sugar. 

Germany and France prohibited our cattle on the pretext that they 
were diseased. One of our objects in coming here, gentlemen, was to 
convince you that our cattle were healthy and that this prohibition on 
account of disease was only a pretext. In line with that object I will 
cite an example: I have been shipping cattle for twenty years. For 
the last three years I have lost only one steer from disease. I lost 
twenty or more the other day frqm drowning, but that is not pertinent. 
The insurance on cattle used to be $10 per head, while the insurance 
to-day is only 68 cents per head, which shows that our cattle are 
healthy. They were never healthier, and only England is open to us 
now, because they say our cattle are not healthy. 

RESTRICTION AGAINST AMERICAN CATTLE. 

Mr. Grosvenor. Some time after this reciprocity section was adopted 
as a law England made some further restriction in regard to cattle. 

Mr. Allerton. The restriction England made originated from the 
idea that our cattle had pleuropneumonia, I was in England at 
the time, and therefore know all about it. This was almost totally 
confined to small places. 

Mr. Grosvenor. I found it in force at Glasgow in 1881. The cattle 
must be killed in ten days after the time the steamer is sighted at the 
port of entry. 

Mr. Allerton. I think ten days is long enough. Keeping them after 
ten days is very expensive. They would run down fast. I believe if 
reciprocity was restored and the markets of the world opened to Amer- 
ican products that it would not only relieve the Government, but would 
also relieve the farmers. The farmers were never in so bad a coudition 
as they are now, with oats at 15 cents, corn at 20 cents, and other things 
in proportion. 

Mr. Tawney. What countries with which we had reciprocity arrange- 
ments did you ship cattle to during the duration of those arrangements? 

Mr. Allerton. We shipped to the countries of England, Germany, 
France, Switzerland, Belgium, and some to Norway and Sweden. 

Mr. Dolliver. Were there any shipped to Spanish countries'? 

Mr. Allerton. Yes, sir; some were shipped to Spain. 

Mr. Dolliyer. What I want to know is, were any sent to South 
America? 

Mr. Allerton. No dressed beef,- but live stock was shipped from 
New York when we had reciprocity. 

Mr. Dolliyer. Do you know anything about any regulations pro- 
hibiting the importation of our cattle into Guba? 

Mr. Allerton. I do not know. I have not sold any there since 
reciprocity was repealed. I understand, however, a great many pur- 
chased cattle to go from New York. What they have done I can not 
tell you. I have not been able to sell any there myself. 

ADVANTAGES OR RECIPROCITY TO THE FARMERS. 

The Chairman. You started, when interrupted, to state something 
about reciprocity benefiting the farmers. I would like to hear what 
you have to say about that. 

Mr. Allerton. About the benefit of reciprocity to the farmer. I 
think we were paying when reciprocity was a law about 5 J to 6 cents 
for extra cattle. We have been paying since that time from 4 to 4 J 
cents for cattle weighing about 1,500 pounds, which was a loss to the 



RECIPROCITY STATEMENTS. 195 

farmer, because a well-matured steer will cost the farmer more than 
that; it will cost him 5 cents, and consequently it is a loss if sold for 
less. 

Mr. Dolliver. Do you attribute this to the falling off in the Euro- 
pean markets? 

Mr. Allerton. Yes, sir. For, as I stated before, if you force 11,000 
head of cattle upon a market requiring only 10,000, the 11,000 would 
bring no more and probably not as much as the 10,000. 

Mr. Dolliver. Have you considered the number of idlers we have 
had in our midst during the last two or three years'? 

Mr. Allerton. That has not had much effect. I will give you an 
example, because in New England we sold very nearly as many cattle 
in 1895 as in 1892. You know it is a fact that New England only pro- 
duces enough to last her people about nineteen days. They have 
bought, I think, on an average of 25,000 cattle. New England has 
been one of the great markets for the products of the Western country. 

Mr. Dolliver. What means have you for ascertaining this? 

Mr. Allerton. I go to the board of trade where the reports are 
made out. I then add together the foreign shipments and deduct them 
from the total production. That is probably as accurate as can be ob- 
tained and are close figures. We take these reports from the board of 
trade and we select from them the numbers of beef shipments that go 
to Europe and compare these shipments- by years and thus obtain our 
comparative results. 

Mr. Dolliver. Have you any means of making a statement of the 
falling off in the domestic consumption in the American market? 

Mr. Allerton. We have no means except by taking the port 
receipts, from which you will find that they were less in 1895 than in 
1893-94. It has been stated that the reason the farmers 7 products are 
so low is because they have an excessive crop. This is not true, as we 
have had no excessive crop. The great trouble with the people in the 
country is this : The farmer is obliged to ship his grain soon after gath- 
ering it, because money is very scarce in the country, and they can not 
carry it on the ground. He is compelled to ship it to center points, 
which costs about 15 cents. If carried on the farm they would cost 
only 2 cents, and it results in the farmer having to pay that 15 cents. 
That is a true condition of the country to-day. There is a great lack 
of money in the country, and the farmers can not borrow it. 

Mr. Grosvenor. What do you mean by lack of money? 

Mr. Allerton. You would understand if you were a farmer in Illi- 
nois and had to sell your crop because you could not borrow money to 
carry it, and therefore have to sell at a loss. 

Mr. Grosvenor. There is more money in the country now than ever 
before. 

Mr. Allerton. Not in circulation. 

Mr. Grosvenor. Probably not in circulation, but in volume. 

RETALIATION FROM EUROPEAN COUNTRIES. 

Mr. Grosvenor. What means have you of knowing that these restric- 
tions are placed upon us in consequence of the repeal of the reciprocity 
clause? 

Mr. Allerton. Germany and France, after reciprocity was made a 
law — I am familiar with this because I have been there — commenced to 
engage in raising beets, because it gave their surplus labor employment 
and did not exhaust the soil. They said to themselves, we will ship our 
sugar to America and buy American x>roducts. Immediately after this 



196 RECIPROCITY STATEMENTS. 

clause was repealed they made the claim that our cattle were diseased, 
knowing that the President did not have it in his power, except through 
Congress, to prohibit their products. That is the reason they declared 
our cattle sick. I stated to my friends here to-day. These gentlemen 
to whom we are to talk know more about reciprocity than we do, but the 
important thing we want to impress upon them is the fact that our cattle 
are healthy. 

Mr. Dolliver. They make the fullest pretenses. 

Mr. Allerton. They do so, and we believe it is our duty to present 
that our cattle are absolutely healthy. And I believe they did this 
because they knew the President had no authority to retaliate. 

Mr. McMillin. Is it not a fact that at the time when France and 
Germany had no products our meat products were needed, since which 
time the status of affairs has changed and they do not? 

Mr. Allerton. No, sir; in this country there are a million cattle 
put in cans. The larger percentage of that is extra and they can not 
well get along without it, but they keep increasing their duty on them, 
which depreciates the value of our live stock. That is, this is done by 
Germany and France. 

Mr. McMillin. They destroy the profits by excessive duties? 

INFLUENCE UPON THE PRICE OP CATTLE. 

Mr. Allerton. Yes, sir. That, you see, influences the price of our 
cattle, because a million or more are put in cans each year, and as the 
duty is increased the value depreciates. If our cattle were sick you 
see they would have as good a right to reject our canned goods, but they 
do not. 

Mr. McMillin. Has not our beef brought better prices than usual 
for the last few months'? 

Mr. Allerton. Our cattle are $1.50 lower than when we had reci- 
procity with 600,000 less cattle. 

Mr. McMillin. Can you give these prices'? 

Mr. Allerton. I can not tell from memory. But I think from 5 to 6 
cents. 

Mr. McMillin. What we want is definite information. We could 
then compare those prices with the prices of the present time. 

The Chairman. Before you came in Mr. Allerton had gone over that 
subject and given the committee figures. 

Mr. Allerton. I may not be able to give them accurately, only as 
they run in my mind. It was ranging from 5 to 5 J and 6 cents, while 
we are now paying about 4J cents. 

Mr. McMillin. Can you not give me the dates on which those prices 
prevailed? 

Mr. Allerton. The cattle market varies. Last spring it was good 
and at other times it is not so good. The Secretary let in Mexican cat- 
tle and that depreciated the value $1. If you request it, our presi- 
dent will go home and find out exactly what the figures are. 

Mr. Tawney. It would be more satisfactory to have this information 
definite. 

Mr. Allerton. You have the report of our board of trade which 
gives it. 

The Chairman. I would be glad to have you bring that forward and 
introduce it, Mr. Allerton. 

Mr. Allerton. You want to remember that the market is fluctuat- 
ing. It depends upon whether the grain crop is excessive or not. Cat- 
tle the spring of last year were high because of the great shortage in 



RECIPROCITY STATEMENTS. 197 

the home demand, and because there was not much grain up to Octo- 
ber. Our crop of grain in 1894 was lost from the lack of rain, and our 
cattle receipts went down very much because the people did not have 
the grain with which to feed them. 

Mr. Tawney. What has been the restriction imposed by France? 

Mr. Allerton. Nothing but disease. No other pretext. And as I 
stated to the members of our Live Stock Exchange I thought the thing 
we wanted to present to you clearly and distinctly was that our cattle 
w r ere never healthier. 

Mr. Grosvenor. I think you said in your statement that you had 
lost only one steer. 

Mr. Allerton. Yes, sir. I think the very best evidence we can pre- 
sent to you is the fact that when we commenced to ship cattle we paid 
from $5 to $10 per head insurance on live cattle. We now get these 
cattle insured for G8 cents per head. 

Mr. Tawney. What is the obligation of the insurance companies? 

Mr. Allerton. To pay the loss on cattle in transit if they get 
drowned or die. 

Mr. Tawney. If they die in transit the insurance company has to 
pay what they cost? 

Mr. Allerton. Yes, sir. I think this is a most conclusive argument, 
as the insurance people are some of the shrewdest business people in the 
country, and they would not make such a reduction in the rate if our 
cattle were unhealthy and the insurance companies ran great risk. I 
don't know, gentlemen, that there is anything further that I can say on 
this subject. 

INSPECTION OF CATTLE. 

Mr. Dolliyer. Is there any inspection? 

Mr. Allerton. Yes, sir; all cattle must be inspected and tagged. 
When shipped from New York they are inspected in New York and 
tagged by the Government inspectors. Dressed meat is also inspected. 

Mr. Dolliyer. I have heard it stated that the officials who carry on 
this inspection are careless, and that the inspection was not thorough. 

Mr. Allerton. I think it just as thorough as possible. The cattle 
in Chicago have to go through a pen and be inspected one by one, and 
be tagged in the ear. But w r hen the cattle come from Kentucky and 
this side of New York they have a rigid inspection there and must carry 
x the Government tag. I think the inspection is as good and thorough as 
it is possible to make it. 

Mr. Johnson. We have spent a good deal of money through the 
Agricultural Department for stamping out diseases among cattle, espe- 
cially pleuropneumonia and Texas fever, and the Department attributes 
the health of our cattle very much to that work. How do you regard 
that? 

Mr. Allerton. I regard it this way, there never was any pleuropneu- 
monia in this country. 

Mr. Johnson. How about Texas fever? 

Mr. Allerton. We have had Texas fever, and I think I can explain 
Texas fever to you. Texas fever comes, in my opinion, from this cause, 
that the cattle are covered in spring with large ticks. If you buy these 
cattle with these ticks on them and put them in a pasture field and 
keep them separate you can have the native cattle around them ; but if 
you turn the native steer into that field the native steer will die in 
three days, and it all originates from the ticks; but Texas cattle under 
certain conditions are as healthy, in my opinion, as any cattle in the 



198 KECIPROCITY STATEMENTS. 

world. I have experimented on theni to find ont for myself. I have 
bought Texas cattle with ticks and kept them in a field and kept the 
other cattle separate and never lost any, but if you turn in a steer and 
he eats these little ticks he will die in three days. I think the cattle in 
northern Texas never were in any healthier condition than they are 
to-day, and I think Texas cattle are all right and healthy except when 
they have these ticks on them, and that is my judgment. Are there 
any other questions you would like to ask me 1 

INSPECTION BY GERMANY. 

Mr. Dolliver. I would like to know the view the German Govern- 
ment takes, for instance, with respect to our inspection of these cattle 
and dressed meat — whether they regard that inspection important or 
valuable, or whether their action is a protest against the inefficiency of 
that inspection. 

Mr. Allerton. The evidence that they will not receive our cattle is 
clearly indicative that they do not pay any attention to the inspection. 
I think other gentlemen here can explain about the inspection, espe- 
cially Mr. Doud, who is in the business, and he can tell you the inspec- 
tion by the Government is thorough and rigid. 

The Chairman. Mr. Allerton, is it not a fact in Germany they have 
an inspection there and instead of taking the certificate of the Ameri- 
can inspector as prima facie they ignore that almost entirely and send 
their own inspectors into the flock of cattle and they determine whether 
they must be received or not? 

Mr. Allerton. I think they do. We can ship the cattle there and 
they refuse them and say the cattle are diseased. 

Mr. Tawney. Have you been in Germany since they have commenced 
discrimination against our cattle or beef products? 

Mr. Allerton. No; I have not, but I have some friends and partners 
who have been. 

Mr. Tawney. Can yon state to the committee what method the peo- 
ple of Germany employ for the purpose of discriminating against our 
beef and beef products over there? 

Mr. Allerton. They simply declare our cattle are diseased. 

Mr. Tawney. Do the retail dealers use any signs or anything of that 
kind in their shops to indicate such discrimination? 

BRITISH DISCRIMINATION AGAINST AMERICAN BEEF. 

Mr. Allerton. They do in England. England discriminates against 
American beef. I will explain that to you. You can ship the quarters 
of a steer to England for one-third of what you can ship a live steer 
for, and the English people will pay $2 a hundred more on a live steer, 
because that is sold as English beef, and the dressed beef is sold as 
American beef. Of course our citizens who go to England want to eat 
English beef, and would not eat American beef, so they sell our live 
cattle as English beef for them to eat, and it costs, say, 50 shillings a 
head, or $12, to ship a live steer, whereas you can ship the quarters of 
that steer for $5 or $6, and they always pay about $2 more a hundred 
for beef out of a live steer than that brought over in a refrigerator, 
although our dressed beef goes over in perfect condition, and the sys- 
tem of refrigerating is absolutely perfect; and there is where they dis- 
criminate, and I think that is virtually due to a good many of our 
people who go over there, because they do not want to go over there 
and eat American beef. Are there any other questions, gentlemen, 
you would like to ask? 



RECIPROCITY STATEMENTS. 199 

The Chairman. Do any of your friends desire to be heard this 
morning'? 

Mr. Allerton. Mr. Thompson is president of the National Live 
Stock Exchange, and he would like to speak a few words. 



STATEMENT OF MR. W. H. THOMPSON, JR., OF CHICAGO. 

Mr. Thompson said : 

Mr. Chairman and Gentlemen of the Committee: I have very 
little to say, as I could not add much to what Mr. Allerton has stated, 
only to say a word in behalf of the National Live Stock Exchange, 
which we represent. We thank you for your courtesy in listening to 
onr speeches, and we do most assuredly come before you with a petition 
direct from the producers. Those are your constituents and those are 
the men who afford us an opportunity to make a living, because we are 
in the live-stock business. But I would like to add one thing with ref- 
erence to the inspection which you asked Mr. Allerton, and that is it is 
a rigid inspection. The inspection of live cattle most assuredly is, as 
Mr. Allerton has stated, very rigid and very strict. There is not a quar- 
ter of beef, I may say, that is exported but what has the Government 
stamp. Therefore, that indicates a rigid inspection of the post-mortem. 

Mr. Johnson. Does this inspection extend to a microscopic inspec- 
tion? 

Mr. Thompson. Yes, sir; if the veterinary has any doubt, but not 
unless he has a doubt; this is different from the hog product; of course 
that has to go through that kind of an inspection. Now, I would say 
that if there is a question that you gentlemen would like any informa- 
tion upon and we can give it, I guess we can answer almost any question 
that you will put in writing, and we will hunt up the information and 
give you all the information. 

Mr. Dolliver. That enables me to ask a question which I asked of 
Mr. Allerton. It is stated that the product of live cattle is 600,000 less 
this year than it was in previous years, and that there has been a loss 
in sales by reason of the discrimination of Germany and France against 
them of 17,000 head a week, or about 800,000 a year. Now, I want to 
know if the Live Stock Exchange has any figures to show the falling 
off in the domestic consumption of meats, especially cattle, since 1892, 
by reason of the idleness and reduction of wages of the people of our 
own country. 

Mr. Thompson. By giving us time we will answer all those questions 
as nearly correct as it is possible to obtain. 

Mr. Dolliver. I would be obliged if we could have reliable figures 
as to how much less meat has been eaten in the United States in the 
last few years. 

Mr. Thompson. We can show it; but as to the production, the Gov- 
ernment report on the 1st day of January last states the production 
of cattle at 300,000 less than it was in 1895. 

Mr. Dolliver. And you state the price is $1.50 less? 

Mr. Thompson. Yes, sir. 

Mr. Dolliver. We want that state of facts with reference to the 
consumption in the United States. 

Mr. Thompson. We will make it plain to you, sir, and I would still 
further say that Government report also states that the year of 1895 
was the smallest production of cattle since 1882. 



200 RECIPROCITY STATEMENTS. 

Mr. Johnson. In getting the exact figures it will serve the purpose 
just as well if you seud them within a reasonable time as if you had it 
to-day, so that we can get it in the hearing. 

Mr. Thompson. If you would make those questions in writing we will 
answer you in writing with any information possible for us to obtain, 
and I guess we can answer any questions that are propounded; but, of 
course, we have got to go home and look up the figures. 

Mr. Dolliver. I think the question I asked will cover what we 
desire. 

The Chairman. Would it not be well for the subcommittee, in view of 
the fact that we have not the exact information, to formulate a series 
of questions and submit them to the president of this association 1 ? 

Mr. Dolliver. I think so. 

The Chairman. We will send to your address a series of questions 
that will call for the exact information suggested by Mr. Dolliver's 
questions and those of the other members of the committee. 

Mr. Thompson. There is no doubt, sir, we can answer all the ques- 
tions satisfactorily; and, as I say, we are in the interest o± the producer, 
and we will do anything possible, and we do lay this petition before 
you for reciprocity. 

government inspection in the united states. 

Mr. Johnson. Just one more question that you brought out, and 
perhaps you can make it a little more distinct, and that is on this sub- 
ject of the significance of the tag which represents the Government 
inspection here. I thought you stated that in the hog product the 
inspection actually went into a minute microscopic inspection, and that 
beef or steers had to have a tag on when shipped abroad? 

Mr. Thompson. Understand me, the product of the hog has to be 
cured and of course the Government inspector can not examine every 
piece of meat that is exported — that is, of the hog; but of the cattle he 
sees every pound of meat and places on every quarter of dressed beef 
the United States stamp, the inspectors' stamp, and on every animal 
that is exported alive — that is, every steer — he bears a tag, which is a 
pass tag, and without that pass tag he certainly could not be shipped. 
If that tag was put on the steer in Chicago, and before he arrived in New 
York in transit he should lose that tag, the inspector in New York 
would inspect that animal and place a tag on him — that is, if he was 
a sound animal. 

Gentlemen of the committee, I thank you. 

The Chairman. Just leave your address with the reporter and we 
will send some questions to you to be answered. 

Mr. Thompson. My name is W, H. Thompson, jr., and my address 
is United States Yards, Chicago, 111., room 7. 

Mr. L. B. Doud. Mr. Chairman, before you adjourn, I think Mr. 
Thompson did not appear to be positive that all pork products went 
through a rigid inspection by the Government. My understanding is 
that every piece of pork product that is shipped abroad is inspected 
by the Government under the microscope. 

The Chairman. That is my understanding, as I looked up the matter 
a couple of years ago, when the Wilson bill was under consideration, and 
I got from the Secretary of Agriculture the exact work that was being 
done by the Government. If there are no other gentlemen who desire 
to be heard, I will declare this meeting adjourned, and we will then 
communicate with you as we have intimated. 



APPENDIX H. 



ADDRESSES BEFORE THE COMMITTEE ON WAYS AND MEANS BY 
REPRESENTATIVES OF THE FLOUR INDUSTRY. 



201 



THE FLOUK INDUSTRY, 



STATEMENT OF MR. C. G. JONES, PRESIDENT OF THE SOUTHWEST- 
ERN WINTER WHEAT MILLERS' ASSOCIATION, OKLAHOMA CITY. 

Mr. Chairman and Gentlemen of the Committee : The first 
duty that I wish to perforin is to thank you for the kindness and the 
attention that you have paid to me and my associates. It is not my 
purpose to take up more than a few minutes of your valuable time in 
further discussing this very important question, which has already been 
so ably presented to you. 

The American flour milling industry is greatly in need of legislation 
that will authorize the United States Government to enter into recip- 
rocal commercial treaties with other Governments and grant authority 
for retaliation by our Government against the commerce of nations 
that persistently discriminate against American flour and other agri- 
cultural products. The need of such a law has been keenly felt ever 
since the abrogation of former reciprocal treaties between this and other 
Governments, but the opportunity for procuring the enactment of a bill 
promising the desired remedy has only recently been presented. 

The losses of the American flour trade during the past year caused 
the withdrawal of more than $10,000,000 gold from the United States 
Treasury that need never have been shipped abroad had the last Con- 
gress been as solicitous for the commercial welfare of the nation as it 
was zealous in the interest of spoilsmen. We know to our sorrow the 
effects of commercial warfare with nations grown so " wise" and so solic- 
itous for the welfare of their native producers as to tax to the highest 
limit of peaceful human endurance eve^- mouthful of bread their people 
eat, in order to "protect" them against the competition of the fraction 
of their supplies they must buy abroad. We have too long submitted 
to the arrogant and arbitrary discrimination as practiced by nations 
that only develop a neighborly spirit when seeking American gold in 
exchange for their products. We want no class legislation in favor of 
flour millers or any other class of American bread or food stuff export- 
ers; we seek no protection, hence we can afford to 

NOT ONLY REQUEST BUT DEMAND FAIR PLAT. 

That is the business on which the three leading millers' associations 
of the United States — the Millers' National Association, the Winter 
Wheat Millers' League, and the Southwestern AVinter Wheat Millers' 
Association — are now bent. We. want reciprocity with the nations that 
wish it with us, and statutory authority for prompt and effective retal- 
iation against those that rear insurmountable barriers against our com- 
merce. The merits of our products, our ability to place them in the 
markets of the world better and cheaper than the breadstuff producers 
abroad do or can, and the fundamental laws of trade entitle us to all we 

203 



204 RECIPROCITY STATEMENTS. 

ask. It is merely a question of establishing our claims by legislative 
recognition. The opportunity is at hand; will we embrace it and win, 
or neglect it and permit our foreign trade to languish and go into 
untimely decline at the caprice of Governments that owe their own sub- 
jects, aside from our rights, better treatment? 

The evil effects resulting from the abrogation of our reciprocity 
treaties with several nations have impressed upon the breadstuff export- 
ers of the United States very forcibly the folly of abandoning a system 
that admits of profitable interchange of products between this and 
other countries in lieu'xff a system that has most seriously interrupted 
international traffic without any promise of future gain in any direction. 
The interest thatprompts inquiry and suggests a remedy in this instance 
is higher than political concern, and the cause involved is far more holy 
than the welfare of any political party. / 

If it were practicable to ignore politick entirely in the discussion of 
trade questions we would be much pleased, for there is that indefinable' 
something in party allegiance that at times halts even sturdy business 
men short of their full duty to the commercial world, society, and the 
State. By this we mean it is for politicians, not business men, to inquire 
what party is responsible for a condition resulting from unwise legisla- 
tion. [The great commerce destroyers of this generation are not the 
war snips, but the impotent bunglers in charge of the affairs of States, 
who prefer to wrangle over the causes of disaster from a political point 
of view, rather than ,to apply the remedy suggested by plain and simple 
commercial usageTJ It is reserved for trade winners, the commerce 
builders of the world, to overcome the baneful influence of the enemies 
of unrestricted trade, and when these fail in their duty the world must 
suffer in consequence. Ill-faring commerce does not alone affect its 
directly related interests, but radiates its influence, apportioning its mis- 
fortunes throughout the land so misruled. It is therefore plain that 

THE DUTY OF EVERY PRODUCTIVE AND MANUFACTURING INTEREST 

in America is to aid in the extension of the foreign markets we may 
have a natural and reasonable right to enter with our surplus on a com- 
petitive basis. In the matter of applying remedies, we need not bother 
our heads about who, or what party, is to blame for mistakes, nor need 
we for life bind ourselves to the party that gives relief. All that is 
asked of Congress is due the people, and it should be the pleasure of 
the people's representatives to cheerfully render the service most 
desired. 

Viewing the question thus, it seems the duty of every farmer, grain 
merchant, miller, and breadstuff exporter in the United States, whether 
protectionist, free trader, or tariff-for-revenue-only adherent, to lift up 
his voice in support of the bill above referred to, now pending in 
Congress. 

Many reasons may be given why their duty is as stated, the best of 
them all being that the Kerr bill is the only promising remedy for the 
existing state of affairs, proposed. We have no expectation of free 
trade, nor have we need of higher protective tariff laws, except to 
employ in defending national interests by means of retaliation, and 
this the Kerr bill promises, in addition to its reciprocal feature. It may 
not be all that could be desired in a tariff-reform bill, nor need we ever 
expect a bill that is all of that to reach enactment, but we can all rest 
assured that it constitutes a vigorous movement in the right direction, 
and will form, if made a law, a firm foundation on which to build in 
the future. 



RECIPROCITY STATEMENTS. 205 

At this time we are concerned with the promise of early relief, and 
until we have wrought that we should have no efforts to bestow upon 
plans for the distant future. We must, as a commercial nation, decline 
to theorize ; we must resolve to meet and master conditions as we find 
them. That is why we can not afford to view questions bearing directly 
upon our commercial interests as a nation through political spectacles, 
and also why we can not afford to rely upon promises for future relief 
when we have a fighting chance, at least, for success at present. 

OBSTACLES IN THE WAY OF TRADE. 

We are all interested in increasing the demands for the product of 
our great and leading industry, so ably represented on this occasion. 
There are three principal obstacles in the way of stimulating the demand 
for our home-produced flour : 

First, our incomplete trade relations with the other American coun- 
tries and colonies, which are our natural patrons; 

Second, the unjustifiably high rates of transportation from points of 
production in this country to our seaports, and 

Third, the increasing competition with some of the South American 
countries actively enlarging the production of wheat there. 

Third. The increasing competition with some of the South American 
countries actively enlarging the production of wheat there. " 

The matter of excessive and extortionate rates of transportation is 
also a very proper subject for immediate legislative attention and affects 
every wheat and flour producer. 

I consider it appropriate at this time to briefly discuss the first obstacle 
suggested, to wit : Our incomplete trade relations with the other coun- 
tries and colonies of the American continent, and I shall aim to express 
myself without any partisan feeling. I therefore desire to call your 
attention in this regard, first, to the situation existing in this country, 
as I observe it; and second, to a hopeful remedy, as I conceive it. 

This country is producing, on the average, about 400,000,000 bushels 
of wheat per year, 41 j>er cent of which, or more, is exported to foreign 
nations. It is the aim of the industrial world here to develop the 
products of our labor and capital into the most advanced conditions 
for the export trade. For instance, our crude iron is converted into 
machinery, cutlery, and agricultural implements of the very highest 
order for this particular trade. It is the same with our timber and 
many other products of our great and still growing country. As I 
view it, the same rule should be pursued with and apply to our export 
of wheat, which should be converted into flour and rendered a finished 
product before it is shipped abroad for consumption by the people of 
other nations. If this could be accomplished more capital would be 
invested in flour milling in this country, more of our idle labor employed, 
substantially a larger amount of business transacted here, and a new 
thrill given to the great enterprise of milling, now lagging in our midst 
and seeking business in a land of plenty. Besides this, those gentle- 
men of push and courage now engaged in the manufacture of mill 
machinery in our own country would be provided with a larger and 
bettef^market in which to sell the product of their would-be busy fac- 
tories. Under the advanced system of production and classification of 
labor now prevailing throughout the civilized world, the individual 
produces but a small part of what he consumes. Likewise, the nation, 
with but few exceptions, is obliged to rely, in part at least, upon its 
exchange of products with its sister nations for the perfect subsistence 



206 RECIPROCITY STATEMENTS. 

of its citizens. However, I am very happy to suggest that the United 
States of America has acquired comparatively the highest degree of 
independence in this regard. 

Up to the present time this country has not produced any substantial 
part of the sugars, coffees, and a few other articles commonly consumed 
here, but they are imported largely from other American countries, 
which ought, from geographical and political reasons, to be mutually 
interested with us in the development of this great American hemi- 
sphere; and, if I mistake not, recent events indicate that the natural 
sympathies and friendly relations between the countries of this conti- 
nent will soon be crystallized into a strong, international league, of a 
character, power, and resulting benefit never before witnessed in the 
world'-s history. 

The natural relations and sympathies between these countries and 
ours are indisputably stronger than with European nations, from the 
tyrannical power of which their citizens and forefathers have com- 
mendably escaped. If there are tropical barriers in the way of domestic 
production of these necessary articles of food, imported from a climate 
favorable to their growth upon the American continent, then it occurs 
to me that it would be good business sagacity to arrange, if possible, 
to pay for such necessary imported articles of food out of or with the 
unused surplus of this country, which is made up in part from the very 
product of the great farms and flouring mills maintained and operated 
here. 

OUR FLOUR TRADE WITH BRAZIL. 

I find, upon a careful research, that, under a certain agreement for 
the interchange of trade and commerce, taking effect April 1, 1891, 
made and entered into by and between the United States of America 
on the one side and Brazil on the other, our exports of flour to the 
latter country were by it placed upon the nondutiable list, and increased 
as follows, the years named in each instance terminating on the 30th 
day of June: 1891, 722,367 barrels; 1892, 918,447 barrels; 1893, 837,639 
barrels; 1894, 920,869 barrels. 

These official figures show that in three years, and during the con- 
tinuance of our commercial reciprocity with Brazil, our flour exports to 
that country were enlarged nearly 30 per cent, while they fell off for 
the year ending June 30, 1895, 145,000 barrels, or more than 15 per cent, 
which loss, in my judgment, can be safely attributed to the abrogation 
of the agreement under which our merchant millers were justly antici- 
pating a prosperous future. 

Trade is a matter of slow growth, but during our commercial reciproc- 
ity with Brazil our gross exports to that country were substantially 
increased and the gross exports from Great Britain to Brazil were cor- 
respondingly reduced, being $4,341,026 less in 1892 than in 1891, a loss 
to Great Britain of about 14 per cent, although steamship lines from 
Europe cut rates of transportation so that it could not be conducted 
with profit from European points. 

OUR FLOUR TRADE WITH CUBA AND PUERTO RICO. 

Our commercial treaty with Spain for Cuba and Puerto Eico became 
operative September 1, 1891, under which our flour was practically 
admitted free to those islands. It is well to consider the growth of our 
flour trade with Cuba and Puerto Rico during the continuance of this 
agreement, the exports of which to Cuba for the years named having 



RECIPROCITY STATEMENTS. 207 

been as follows: 1891, 114,441 barrels; 1892, 36G,175 barrels; 1893, 
£16,406 barrels; 1894, 662,248 barrels, which shows a growth of more 
than . 480 per ce nt, while oar export flour to Cuba for the year ending 
June 30, 1895, the year after the annulment of our reciprocity treaty, 
fell off to 379,856 barrels, a loss of more than 42 per ce nt. This increase 
of Hour trade with Cuba was not enjoyed by any other countries, as the 
exports of flour to Havana, the metropolis of that island, from Europe, 
fell from 86,519 bags during the months of January, February, March, 
and April, in 1891, to 4,268 bags during the same months in 1892. As 
I understand it, these bags are figured at 140 pounds each. 

Under this arrangement similar advancements in our flour trade with. 
Puerto Rico were achieved, having been as follows: 1891, 127,983 bar- 
rels; 1892, 162,147 barrels; 1893, 167,053 barrels; 1894, 200,813 barrels, 
which shows a gain of about 60 per cent; while our flour export to 
Puerto Rico for the year ending June 30, 1895, fell to 118,617 barrels, 
or a loss of about 40 per cent. 

OUR TRADE IN BREADSTUFFS WITH GERMANY. 

Our reciprocal agreement with the German Empire went into effect 
February 1, 1892, under which our flour was admitted to that country 
at the reduced rate of 7.3 marks per 100 kilograms, or $1.54 per barrel, 
and our exports of that finished product to Germany for the years 
named were as follows: 1891, 8,864 barrels; 1892, 54,277 barrels; 1893, 
200,719 barrels; 1894, 286,229 barrels, which shows a gain of more than 
3,127 per cent, while for the year ending June 30, 1895, and after the 
abrogation of our reciprocal agreement with Germany, our exports of 
flour to that country fell 256,650 barrels, or a loss of more than 10 
per cent. 

During the existence of and under these reciprocal agreements and 
sundry others not specifically mentioned between our country and the 
Central and South American countries and the West Indies, as well as 
with the German Empire, we enjoyed a more prosperous export trade 
than ever before, while our official reports (beginning at page 94 of one 
of the United States Treasury reports, entitled " Commerce and Navi- 
gation of the United States of 1893") show that European exports to 
these same American countries and islands were abated in about the 
ratio of our gain. 

The beneficial results accruing to us from these reciprocal treaties 
could be elaborated upon indefinitely. It is sufficient for me to suggest 
that the loss to the merchant millers of this country, occasioned by the 
abrogation of our late reciprocal commercial relation with the other 
American countries, islands, and the German Empire, is authentically 
estimated at the large sum of $16,000,000 per year, or 4,000,000 barrels 
of flour, to produce which in one year would require 133 flouring mills 
with a capacity of 100 barrels each per day. 

THE OTHER EUROPEAN COUNTRIES. 

France has been more than self-supporting in the production of wheat 
and flour, her gross annual production being relatively about three- 
fourths of ours. The United Kingdom will soon rely exclusively upon 
other fields than ours for material for her breadstuff's, as our flour 
exports to that country are falling off' at the rate of 1,000,000 barrels 
per year, and it behooves us as a Government to establish and main- 
tain such trade relations with the 50,000,000 people of the other Ameri- 
can countries and colonies, also with the German Empire, as will 
provide us a steady market for our surplus flour. 



208 RECIPROCITY STATEMENTS. 



The gravity of the situation is apparent and alarming. The total 
production of wheat in the United States for the year 1895 shows an 
increase of 67,000,000 bushels over the previous year, still this crop 
year, from July 1 to November 30, we exported 8,175,000 bushels of 
wheat and 820,000 barrels of flour less than in the corresponding months 
of 1894. The mills of this country are not running to their full capac- 
ity. As I have already stated, we have each year a great surplus of 
wheat sold abroad. Why not convert this surplus into flour here and 
export the flour instead of the wheat? We have abundant milling 
facilities, ample capital, and a skill and genius unequaled anywhere in 
the manufacturing world. How shall we accomplish this end? The 
remedy is comparatively adequate. 

WHAT CONGRESS CAN DO. 

Our national Congress can pursue a policy and provide a machinery 
by which our former export flour trade can be restored and enlarged. 
Who can more appropriately petition Congress for a redress of this 
grievance than we who are now primarily compelled to suffer. The 
merchant millers, manufacturers, and all patriotic citizens of this whole 
country, presenting this most important subject to Congress, urge the 
vast necessity of speedy and favorable legislative action by restoring and 
enlarging oar former international reciprocal agreements, and thereby 
secure the trade which we justly claim belongs to us. 

Brazil finds in our country a market for its principal exports, shipping 
to us over $80,000,000 per year of its products, while we in turn export 
to Brazil less than $14,000,000 of our products per year. The gross 
exports from Cuba are valued at about $100,000,000 per year, three- 
fourths of which are sent to this country and consumed here. The 
gross imports into Cuba amount to $53,000,000 per year, three-eighths 
of which are only produced in and shipped from the United States. It 
will be observed that we furnish a market for 75 per cent of the total 
exports of Cuba, and we supply but a minor part of the imports into 
Cuba, while England and Spain enjoy the principal portion of that 
trade. And the same is true of a large number of the other American 
countries and colonies. Our markets are particularly valuable to them 
all. They are noncompeting with us so far as the use and consumption 
of their products here are concerned. Why should we afford such val- 
uable markets to these countries and colonies without reciprocal benefits 
granted us in their markets? Our profitable markets should not be 
available to any nation without giving to us an equivalent therefor. 

Our flour is recognized in every market as wholesome. Its superior 
quality is never questioned. It seems to me, gentlemen, that our situ- 
ation demands your serious and favorable attention if you would enlarge 
our foreign trade, which is indispensable to our perfect prosperity and 

THE COMPLETE WELFARE OF OUR COUNTRY. 

It is true that our industries are classified and operated under sepa- 
rate and distinct managements, but the influence and effect of the 
success of ,any one industry are incapable of confinement within it. 
There is no perfectly independent, exclusive industry. In fact, the 
financial success of any enterprise affects and ameliorates the condition 
of all lateral employments and occupations. The establishment of a 
new industry in any locality is hailed with joy by all the citizens of 
that community. Improvement companies are organized in nearly 



. 



RECIPROCITY STATEMENTS. 209 

every modern Western city to induce the investment of foreign capital 
therein, because of the benefits which accrue therefrom to the great 
aggregate of the people. If new industries are sought and considered 
for the best interests of all the people, then established industries 
should be encouraged and maintained to serve the same purpose and 
accomplish the same end. Prospective industries brighten hope ; estab- 
lished industries lighten burdens. The one stimulates confidence in 
the future, the other provides bread for the present. It is the enlight- 
ened duty of this great nation to expand the market for our domestic 
flour, to the extent, if possible, of perfect utilization of every flouring mill 
in this country. 

This great battle should not and can not be fought alone by mer- 
chant millers and mill manufacturers. It is a question of patriotism 
which deeply concerns every loyal citizen of our land, who should 
exert his full power, intelligence, and influence for the restoration and 
enlargement of that policy under which that great industry was promoted 
and prospered. 

Mr. Chairman, rising above the prejudices of partisanship, let us all 
be true Americans, wage a noble, conscientious fight to promote a dis- 
tinctively American policy, and thereby assist in working out the highest 
destiny of a great people. 



STATEMENT OF MR. M. H. DAVIS, OF SHELBY, OHIO, PRESIDENT 
OF THE WINTER WHEAT MILLERS' LEAGUE. 

The Chairman. We will resume the hearing this morning on the 
question raised by the millers of this country, and will now listen to 
Mr. Davis, president of the Winter Wheat Millers' League. 

Mr. Davis said: 

Mr. Chairman and Gentlemen of the Committee: What I 
shall say to you is at the direct instigation of the Winter Wheat 
Millers' League, of which I happen to be president. My friend Mr. 
Perry, of Indianapolis, is present as secretary of this league. This 
organization is composed of the merchant millers of Ohio, Indiana, 
Michigan, Illinois, Kentucky, Tennessee, and has a considerable rep- 
resentation in the State of Missouri. The league covers what is known 
as the winter wheat producing belt of the country, that is, the Central 
States, which produce more winter wheat than any other section of the 
country. I may say to you that while acting as the direct representative 
of this organization, I also know that we represent not only the interest 
but the sentiment of the entire milling fraternity of the country. I am 
further assured of that from my connection with the Millers' National 
Association of which I am chairman of the executive committee, and of 
which Mr. C. A. Pillsbury, of Minneapolis, is president. I mention 
these things to show you that we have thoroughly organized ourselves 
for the purpose of the presentation of our ideas and our wants. 

extent of the milling- industry. 

' Extent of the flour-milling industry in the United States, as shown by Eleventh Census. 

Capital $208,473,500 

Annual wages paid 27, 035, 742 

Value of annual product 573, 971, 474 

H. Kep. 2263 14 



210 



RECIPROCITY STATEMENTS. 



The value of the annual flour output exceeds the annual value of any 
other product from the raw material manufactured in the United States, 
as follows : 

Exceeds iron and steel by $83,000,000 

Exceeds lumber-mill products by 110,300,000 

Exceeds cotton goods by 246,000,000 

Exceeds woolen goods by 380,000,000 

Exceeds boots and shoes by 293, 300, 000 

The mills of the United States have capacity to manufacture 400,000 
barrels of flour daily, which, in 250 operating days, would amount to 
100,000,000 barrels of flour as the probable annual output under favor- 
able conditions, while 300 working days would swell the aggregate to 
120,000,000. Thus the mills have, at present, capacity to annually con- 
vert into flour from 450,000,000 to 540,000,000 bushels of wheat. 

The actual average annual output of flour by the mills of the United 
States does not exceed 55,000,000 barrels, and proves, what all in the 
business admit, that the mills are not employed over one-half time. 
Figures showing the disposition of our wheat crop substantiate the 
above statement, viz : 

. ^ Bushels. 

/ Average' wheat crop, about 460,000,000 

Required for seed and to feed stock 110, 000, 000 

Average export of wheat 100, 000, 000 

55,000,^000 barrels flour require 247,500,000 

Total 457,500,000 1 

EXPORTS OF WHEAT. 

\ There are 100,000,000 bushels of wheat exported annually, and that 
to us means that our mills must lie idle the time that would be required 
to manufacture this vast quantity into flour. Why does that condition 
exist? It is because of the discriminating tariffs of other co'untries 
against American flour, or against flour and in favor of wheat, The 
extent of that discrimination is ascertained from the Government rec- 
ords. I will say here, that the average profit in milling would be con- 
sidered extraordinary at 10 cents per barrel. If a mill can make 10 
cents on the product it would be considered as doing an extraordinarily 
good business. The profit ranges from nothing to a few cents a barrel, 
and in many cases for the last two years mills have been running at a 
loss or have been forced into assignment. 
European tariffs are as follows : 






Country. 


Wheat, per 
bushel. 


Flour, per 
barrel. 




Tree. 

Tree. 

Free. 

$0.29 
.42 
.058 
.32 
.47 
.37 
.24 


$0. 386 


Holland 


Free. 




Free. 


Italy 


1.49 




2.26 




.386 


Germany 


2.21 




2.18 




$1. 88 to 2. 73 




1.54 







* Prohibited, except under conditions prescribed by the Government. 



RECIPROCITY STATEMENTS. 211 

It is thus seen that there Is no continental country which serves as 
a market for our product if you except Holland and Denmark, and 
these may soon be closed. There is no other place on which we are 
received on equal terms^jT 

Mr. Tawney. How>iSit with respect to the imports of the other 
countries 1 

Mr. Davis. That is true of flour from all countries. 

The Chairman. They do not discriminate against American impor- 
tations any more than any others ? 

Mr. Davis. I think that is true. In the continental countries the 
milling interest has brought its influence to bear. France has a millers' 
association of 3,500 members. If you turn to the consular reports upon 
the subject you will find the verification of what I say. We have the 
documents to prove it. In Germany there is an association of millers of 
2,800 members. These associations embrace all the large mills in those 
countries, and they have been enabled to have laws passed enabling 
them to make these discriminations at the expense of the consumers of 
flour. Now, we maintain with such a treaty as is contemplated by the 
Kerr bill — and that is the subject upon which we are talking — that 
American flour, which is better than any made anywhere in the world, 
will, by virtue of its merits, win its way into the markets of those 
countries ; but to undertake to introduce it against those discriminating 
duties would be out of the question, and no miller would undertake to do 
business against those discriminating duties of 20 cents to $1.50 per bar- 
rel merely for the sake of introducing his flour abroad. It seems strange 
to a man in the milling business that with the capacity to manufacture into 
flour all the wheat produced in this country — and we could manufacture 
it all in the period of eight months with our present capacity — there 
should be exported 100,000,000 bushels of wheat. That exportation means 
the people of this country must_forego a possible profit that would be 
derived from the 4 manufacture as well as the distribution of the cost of 
such manufacture, which has been variously estimated at from $50,000,000 
to $80,000,000 per year; and not only is the flour-milling interest itself 
directly influenced, but the trade in its various ramifications is also 
influenced. Of course the raising of wheat is the great feature, but 
the manufacture of staves, headings, and the cooperage necessary for 
packages is affected, ahoTalso the manufacture of paper sacks and 
cotton sacks. All those people are deprived of a possible business by 
the restrictions placed upon our business. This can be carried farther 
to the manufacture of milling machinery, which is also affected. The 
business of manufacturing milling machinery, with the growth of the 
industry in this country for twenty years, is one of great magnitude. 

. TARIFFS QF THE AMERICAN COUNTRIES. 

In regard to the tariffs of the countries of the Western Hemisphere, 
you will find that we have been discriminated against, and had been 
for many years, until the passage of the McKinley bill, because we 
have to contend with the superior banking, transportation, and other 
facilities of countries of Europe. 1 have a table here showing the com- 
parative results of exports of breadstuff and flour, before the operation 
of the reciprocal treaties with South American countries, during the 



212 






RECIPROCITY STATEMENTS. 



existence of the treaties, and since the abrogation of the same, that I 
would like to file with the committee. The table is as follows : 

Table I. — Showing comparative results of exports of breadstuff s and flour before the opera- 
tion of reciprocal treaties, during the existence of such treaties, and since the abrogation 
of same. 



Country. 


Breadstuff's. 


Flour. \ 


1885. 


1891. 


1891. 


1894. 


1895. 




$3, 419, 448 
462, 651 
160, 817 

1, 077, 619 
964, 981 
301, 597 

88, 940 
159, 725 
394, 165 

2, 721, 600 
647, 747 


$4, 386, 121 

1, 223, 671 

222, 001 

874, 979 

1, 323, 773 

336, 935 

216, 771 

465, 675 

748, 875 

3, 887, 175 

784, 739 


Barrels. 

722, 369 

224, 938 

38, 431 

114, 447 

194, 015 

56, 696 

39, 131 

62, 528 

127, 983 

523, 216 

147, 002 


Barrels. 
920, 869 
196, 085 
44,173 
662, 248 
215, 412 
108, 465 
48, 843 
87, 597 
200, 813 
549, 824 
218, 847 


Barrels. 
775, 425 
231, 817 
41,836 
379, 856 
204 178 












113, 020 
34, 937 
110, 613 
118, 617 
520, 936 
195 323 
















Total 


10, 399, 290 


14, 470, 715 


2, 250, 756 


3, 253, 176 


2, 726, 558 



Note. — The showing for 1895, while exhibiting a great falling off in exports of flour for the year, 
does not fairly represent the loss of trade consequent upon withdrawal of reciprocal relations. It 
covers from July 1, 1894, to July 1, 1895. The shipments of flour immediately after the enactment of 
the laws of 1894 were largely in excess of natural requirements for the last six months of that year, 
the increase being due to the likelihood of higher duties following the change of status. 

These figures are compiled from the message of the President of the 
United States in response to a resolution of the Senate, April 16, 1892, 
relative to the commercial agreements made with other countries. It 
is No. 119, Fifty-second Congress, first session, Senate. This, Mr. 
Smith (superintendent of the Senate document room) informs me, is 
the only copy he has on file, and I am obliged to return it, but the 
information has been carried over to another report. 

Mr. Tawney. I will ask you whether the tariff's in these South Amer- 
ican countries to which you have referred treat American flour differ- 
ent from flour imported to those countries from other places than the 
United States? 



SUCCESS OF THE RECIPROCITY ARRANGEMENTS. 

Mr. Davis. No, sir; and I consider that a strong argument in favor 
of this bill. Because we have practiced this species of reciprocity with 
the South American countries with success I think is due acknowl- 
edgement that justice has been done to those countries, and if the same 
sort of legislation which will bring about the game kind of treaties can 
be put in force, we can be put on an equal footing with the countries 
of Continental Europe. 

Mr. Tawney. Are you exactly correct in regard to Cuba? 

Mr. Davis. Before the passage of the McKinley law the duty was 
the same to all countries. 

The Chairman. The duties of these South American countries was 
the same? 

Mr. Davis. The duty in Cuba is applied to flour from all countries, 
and at the present time our flour comes under the second column or 
favored-nations clause in Spain's tariff, and is now paying a duty of 
about $4.16 per barrel. During the continuance of the relations brought 
about by the treaty of 1891-92, subsequent to the passage of the McKin- 
ley law, that duty was but 88 cents a barrel. . Previous to the adoption 
of the McKinley law it was in the neighborhood of $4. 



— re 



RECIPROCITY STATEMENTS. 213 

The Chairman. You started to say, when interrupted by my col- 
league, that this executive document, Senate No. 119, had been carried 
over and published in some other publication ? 

Mr. Davis. Yes, sir; I have it here. This publication which shows 
the increase in the amount of our exports under the law of 1890. 

Mr. Tawney. Can you state whether or not it shows what our trade 
has been with the South American countries, as compared with the 
trade of European countries with those countries, prior to the enact- 
ment of the reciprocal clause of the act of 1890? 

Mr. Davis. I can not say; it may do that. 

Mr. Tawney. Do you know whether or not that has been investi- 
gated with a view of showing whether or not we are getting our share 
of that trade? 

Mr. Davis. I am satisfied that it does cover that feature. I have 
taken this statement from u No. 6 of Imports and Exports of the United 
States in its Trade with Foreign Countries During the Years Ending 
June 30, 1890 and 1894," and "No. 4, Exports of Domestic Merchandise 
During the Year Ending June 30, 1895," and these, together with this 
Executive Document No. 119, Senate, give me the basis for making this 
table, to which I referred a short time since, showing the comparative 
results of exports of breadstuff's and flour before the operation of the 
treaties, and during their existence, and since the abrogation of the 
same. Those three features I thought would be of interest. 

Mr. Tawney. Does your statement show the countries, or just the 
aggregate of our exports f 

Mr. Davis. It is the exports to each country during these years and 
the aggregate, and includes Brazil. 

The Chairman. File that and it will be made a part of your remarks. 

CAPITAL INVESTED UPON LEGISLATION. 

Mr. Davis. The point in this table, as I see it, is that the reciprocity 
policy, which had done so much for the millers and which had caused 
them to increase their capacity and had built up hopes of increase of 
business to an extent it had never before reached, was suddenly wiped 
out, and since that time the business has been practically prostrated. 
True, the mills are running, because people must have flour, but there 
is a great deal of difference between handling so vast a business when 
it is paying expenses and when it is not. 

The Chairman. Have you any statistics showing the consumption 
in New England and what it has been since the repeal of the McKinley 
bill? 

Mr. Davis. I have statistics touching upon the subject. As a miller, 
I can give you my own experience. 

Mr. Tawney. That is just as valuable as statistics. 

Mr. Davis. Yes, sir ; it certainly is more to the point with me. Our 
trade in New England previous to the passage of the present law of 

94 (I believe it is called) amounted to about 40,000 barrels of flour a 
year. Immediately following the passage of that law, it dropped down 
to practically 20,000 barrels a year. We have been unable to increase 
it to any extent since. It does not nearly amount to what it did for- 
merly, caused by the general depression of business. In other words, a 
man without work^ajs less heartily than one who has work and can pay 
for his necessities. 



The Chairman. Have you any statistics to show the consumption of 
flour since the law of 1894 was passed, as compared with what it was 
under the McKinley law? 






214 RECIPROCITY STATEMENTS. 

Mr. Davis. No, sir; I have not prepared any. 

Mr. Tawney. Are you situated so as to gather the statistics and 
furnish them to the committee as to the difference between the domestic 
consumption at the two periods — 1894 and 1895? 

Mr. Davis. There are 18,000 mills in the United States — and that, 
perhaps, I should have mentioned before — and to compile a record of 
their production would be an enormous task and take a great deal of 
time. I can only say that from my connection with the millers all over 
the country, I am satisfied that the domestic consumption is much less, 
and therefore our need of foreign trade is much greater. 

Mr. Tawney. You say that from your own experience in 1894 you 
sold in New England about 40,000 barrels of flour, and in 1895 only 
about 20,000 barrels? 

Mr. Davis. Our output of flour for 1892 was, in round numbers, 
150,000 barrels. Every barrel of that, so far as I know, was consumed 
in the United States. In 1894 we secured considerable export trade, 
because we began working up a trade in foreign countries; and it 
requires many years before we can get on a substantial basis with 
foreign customers. Our domestic trade fell off fully 50,000 barrels, or 
one- third of our entire product. 

Mr. Tawney. How many mills do you run? 

Mr. Davis. I only run one of between 900 and 1,000 barrels capacity 
per day. 

Mr. Tawney. That is one of the 18,000? 

Mr. Davis. Yes, sir; they are not all so large, but many are larger. 

Mr. Tawney. The percentage of loss is about 33£? 

Mr. Davis. Yes, sir; the domestic trade fell off that much. Our 
foreign shipments into those countries/began in 1893, and we were in a 
better condition in 1894, for in 1894 wV^sported practically 50,000 bar- 
rels of flour out of our 150,000 barrels. Our mill, with favoraMe legis- 
lation in the direction of this bill, could make 200jM0 barrels%f flour 
with the same expense it could make 150,000 barrelsTS -as^r 

The Chairman. With the same capital investe4^r3^ 

Mr. Davis. Yes, sir ; we would turn it over more frequently. To 
enable a mill to run without loss it will have to be operated approxi- 
mately 200 days in the year. If it can be operated 250 days in the 
year it will show a reasonable output of flour at a higher profit, and if 
it can be operated for 275 or 300 days in the year it ought to show a 
very satisfactory balance sheet at the end of the yearH 

effect of repealing the reciprocity arrangements. 

The Chairman. Since the repeal of the reciprocity clause of the 
law of 1890 this foreign trade has fallen off greatly? 

Mr. Davis, The foreign trade of the mills has largely dropped off. 
In our particular case our foreign trade was largely worked up in Eng- 
land, for in that country there were no restrictions. I mention this to 
show the loss in the domestic trade and the necessity of extending our 
trade abroad to make up the loss in our domestic trade. We could not 
get into Germany or France on favorable terms, but we could get into 
Great Britain. 

Mr. McMillin. Then it was the free trade markets of Great Britain 
that enabled you to live at all? 

Mr. Davis. It was the fact that there was no discrimination against 
flour in favor of wheat in Great Britain. We would not care if there 
had been an equal duty on flour and wheat. We make no complaints 



RECIPROCITY STATEMENTS. 215 

as to the right of other countries to impose duties upon our products 
imported into those countries, but we do complain, and we think we 
have just reason to complain, of discriminations against our manufac- 
tures in favor of our raw materials. 

Mr. McMillin. It was a form of protection for that special industry? 

Mr. Davis. It is one form of protection to one industry in those 
countries to the detriment of the consumers of those articles. The 
consumers of flour in France and Germany to-day must pay for flour a 
price greater to the extent of that discrimination. 

Mr. McMillin. It was possible to work up a trade in free-trade 
England, but it was impossible to work up a trade in countries like 
France and Germany? 

Mr. Davis. It was discrimination against our products that pre- 
vented trade. Had the duty on flour been equal to the duty on wheat 
we would have no cause to complain. We would have been able to 
extend our trade into those countries on our merits. 

Mr. Tawney. It is not of their tariffs that you complain? 

Mr. Davis. No, sir. 

Mr. Tawney. It is the discriminations imposed by those tariffs in 
favor of one product as against another, of which you complain? 

Mr. Davis. Yes, sir. 

EFFECT UPON THE PRICE OF WHEAT. 

Mr. Tawney. One question occurred to me a moment ago in relation 
to our trade, and that was whether or not we were exporting the amount 
of flour we did in 1894, or whether or not an increased export of Amer- 
ican flour has a tendency to increase the price of wheat produced in 
this country? — — ■ ""— 

Mr. Davis. I think undoubtedly it does. 

The Chairman. You can pay a bigger price for wheat in this country 
if the conditions are such that you can manufacture the entire American 
product? 

Mr. Davis. Yes, sir. If we can by any manner of means manufac- 
ture one-third more flour this year than we did last year we will make 
more money, and therefore we can pay more for our raw material, and 
consequently the farmer would be benefited by the higher price. What 
is true of our mill is true of all mills in the country. It is true of the 
business in nearly every county and city in the United States west of 
New York. 

Mr. McMillin. If I understand you, your deductions are that any 
laws, whether national or international, which restrict trade between 
the different countries will injure you as a producer and will also injure 
the man who furnishes you the raw material? 

Mr. Davis. I did not say that. 

Mr. McMillin. How is it, then, that the restricted trade affects you 
in those countries? I understood you to say that the restrictive laws 
of France had restricted your trade. 

Mr. Davis. That is not the point as I see it. 

Mr. McMillin. I am asking if that is the fact; whether the laws 
restricting trade do not affect you as a manufacturer and also the man 
who furnishes you your raw material? 

Mr. Tawney. Does not Mr. McMillin proceed upon the presumption 
that we have restrictive laws in the United States? 

Mr. McMillin. I am making the question general. I do not apply 
it to any country or to any place. Mr. Davis says that he was enabled 
to do business in some countries and failed in others. 



216 RECIPROCITY STATEMENTS. 

Mr. Davis. My deductions are along this line, that, notwithstand- 
ing the restrictive features of the tariff laws of foreign countries, we 
would sell our goods on their merits and would make progress in the 
distribution of our goods in those countries under those laws, provid- 
ing there was no discrimination against our manufactured products in 
favor of our raw material. 

Mr. McMillin. The less restriction the greater would be your oppor- 
tunity. 

Mr. Davis. It is not a question of restriction, but a question of dis- 
crimination. 

Mr. McMillin. But the less the restriction the greater the oppor- 
tunity? 

The Chairman. He is not dealing with restrictions. 

THE FLOUR TRADE WITH BRAZIL. 

Mr. Davis. I would like to make my point clear to you. Any ques- 
tion any gentleman desires to ask is perfectly agreeable to me. Brazil 
is a country which we as millers make a considerable point of. In 
Brazil our flour was admitted free from 1891 to 1895, because of the con- 
cessions to their products, mainly coffee. Our trade in Brazil has been, 
increasing for many years. 1 have prepared this table in order to show 
you that, notwithstanding the restrictions of foreign countries, Yankee 
ingenuity and enterprise has been enabled to extend our manufactures 
into other countries. 

Our trade in Brazil had been a constantly increasing one for many 
years, as the following figures of average yearly exports to Brazil show : 

Barrels. 

1840-1849 253,000 

1850-1859 395,000 

1860-1869 352,000 

1870-1879 510,000 

1880-1889 645,000 

1890-1894 817,000 

1894 921,000 

In the year ending with June 30, 1895, however, following the abro- 
gation of our treaty with Brazil, our exports of flour dropped back to 
775,425 barrels. 

It was only during the last two periods under review that we enjoyed 
the benefits of reciprocal arrangements. Notwithstanding our trade 
had 'gradually increased, since the abrogation of the law our shipments 
to Brazil have fallen off almost 200,000 barrels. These figures I have 
taken from public documents. 

The Chairman. Is that per annum ? 

Mr. Davis. Yes, sir; American flour now pays 42 cents in Brazil. 
Belgium is a country that for many years had admitted American flour 
free, but since the repeal of the law of 1890 the situation in Belgium 
has been changed, a tax having been imposed last spring. During the 
past six months the shipments of American flour have been 247,000 
kilos. Formerly we shipped 5,000,000 kilos to that country. That 
shows the results of a discrimination of 36 cents per barrel on American 
flour, and the consequent loss of trade of nearly 5,000,000 kilos of flour. 

Mr. Tawney. Inasmuch as you speak in reference to the Kerr bill 
now before the Committee, I would like to ask whether this bill con- 
templates merely retaliation or restoration of the reciprocity clause of 
the act of 1890. I gather from it that it merely relates to retaliation 
by the imposition of a higher duty on the goods imported from coun- 
tries that discriminate against flour. 



RECIPROCITY STATEMENTS. 217 



IMPORTANCE OF THE RETALIATORY FEATURE. 

Mr. Davis. Yes, sir ; that we considered an important feature, in 
that it is retaliatory. The first section deals with the subject of retal- 
iatory duties, and the second is in reference to securing a reciprocity of 
trade. 

Mr. Kerr. The McKinley law was simply used as a leverage. It 
was never used as a retaliatory measure. This is substantially the 
same provision as the McKinley law. 

Mr. Davis. The subject of sugar is introduced here in order to 
secure a treaty with Cuba; the subject of coffee and hides for Central 
and South American countries, including Brazil; that of tea for China 
and Japan. I may say that the trade in American flour with China 
and Japan, notwithstanding the restrictions that those countries put 
upon American products, has been gradually increasing, but at a slow 
pace. Considering the population of those countries, it is my opinion 
that the United States should provide facilities for extending trade 
into China and Japan, and that there would be enough demand from 
those two countries to require the entire product of American wheat 
raised west of the Kocky Mountains. I believe that is the consensus 
of opinion of those engaged in the milling trade. 

The Chairman. With reference to foreign countries, is your flour 
shipped in English bottoms or American bottoms? 

Mr. Davis. In both. 

The Chairman. In what proportion? 

Mr. Davis. Probably most largely in English bottoms. 

The Chairman. Is that true with the Cuban and South American 
trade, not only with you, but other American shippers ? 

Mr. Davis. I think it is. 

The Chairman. Is there anything further you want to present? 

Mr. Kerr. I want to call the attention of the committee to one mat- 
ter. Mr. Gallagher stated that in some towns the price of wheat was 
higher than in Chicago, where it was governed by speculation. 

Mr. Davis. The reason for that is that the wheat used by American 
mills is of a higher grade than that used for speculative purposes. That 
used by the mills is of a high grade, and the result is that it is at a 
premium, which redounds to the interest of the farmer. 

DISCRIMINATIONS AGAINST AMERICAN FLOUR. 

Mr. Tawney. In coming in contact with the administration of foreign 
tariff laws have you discovered any discrimination that results from 
the administration of those laws against American products? 

Mr. Davis. We discovered in France that by reason of their peculiar 
laws they have been, in the last twelve months, able to ship flour from 
France into Great Britain, and the amount of flour shipped has been 
2,300,000 barrels. The reason that that has been possible, and that it 
exceeds by fourfold what it has ever been before, is that France during 
the past year passed laws giving the exporters of flour 16 cents per bar- 
rel bounty on flour exported; and it is the result of that action taken 
by the Government favorable to that particular class of manufacturers 
that has been a very serious factor in the loss of American trade in 
England. 

Mr. Tawney. Are the duties levied specific duties or ad valorem duties 
in the countries you have spoken of? 

Mr. Davis. They are not arranged in France on either an ad valorem 



218 RECIPROCITY STATEMENTS. 

or specific plan, as understood, in the United States. It depends upon 
the extraction of flour from the wheat. For instance, if flour is 70 per 
cent of extraction, that would be one rate of duty; a flour 60 per cent 
extraction would be still higher than that, and a flour 50 per cent extrac- 
tion would be a still higher duty. That is under an arrangement brought 
about by the Millers' Association of France for the benefit of their trade. 
The duties in general are specific duties, but they are qualified in the 
manner mentioned. 

Mr. Kerr. I want to know whether you have figures showing the 
imports from Germany under the reduced duties and under the McKin- 
ley law. 

The Chairman. If he has, they can be filed with the stenographer 
and become a part of his remarks. 

Mr. Davis. The figures are all embraced in the pamphlet heretofore 
referred to. 

Mr. Kerr. The exports to Germany are not in that, but I can fur- 
nish them to the committee. 

Mr. McMillin. You speak of the duty imposed by Brazil on our 
wheat products. 

Mr. Davis. Yes, sir. 

Mr. McMillin. When was that imposed? 

Mr. Davis. On the 1st of January, 1895. 

Mr. McMillin. Has that increased or diminished our trade with 
Brazil? 

Mr. Davis. It has decreased somewhat. 

Mr. McMillin. What percentage? 

Mr. Davis. It has decreased 200,000 barrels. 

Mr. McMillin. Out of the total, that would be nearly 25 per cent? 

Mr. Davis. The duty amounts to 42 cents per barrel. 

Mr. McMillin. What would be the ad valorem duty? 

Mr. Davis. A barrel of flour would be worth, perhaps, $4.20, and 42 
cents a barrel would be 10 per cent. Before the passage of a reci- 
procity arrangement with Brazil there was an equal duty, as I said, 
and our trade had been gradually increasing under those circum- 
stances. It increased 50 per cent during the short time of our reciprocal 
arrangement. 

Mr. Tawney. Have they under the present law more favorable 
terms? 

Mr. Davis. They have no more favorable terms, but Spain has better 

facilities for shipping into Brazil than we have in this country by rea- 

| son of certain financial arrangements. The banking arrangements are 

better and the language is practically the same, so that Spain's natural 

facilities exceed ours. 

Mr. Tawney. Have you the statistics of our trade with Germany 
before the reciprocal treaty ? 

The Chairman. Mr. Kerr can furnish it. 

Mr. Davis. The figures are as follows : 

France : 

Exports to, in 1894 $55,315,511 

Exports to, in 1890 49,977,024 

Increase 5,338,487 

Germany : 

Exports to, in 1894 92,357,163 

Exports to, in 1890 85,563,312 

Increase 6,793,851 



RECIPROCITY STATEMENTS. 219 

Mr. Tawney. Is that the exports of flour? 

Mr. Davis. That is the exports of everthing, including flour. I was 
unable to get a table showing the quantities of flour. 

Mr. Kerr. In 1890 the exports of flour were 6,275 barrels, and the 
last year of our reciprocal arrangement our German exports amounted 
to 286,000 barrels, an increase of two or three thousand per cent. 

Mr. Davis. The same condition that I have mentioned as relating to 
South American countries made the exportation s to Germany greater 
in 1895 than they can possibly be from now on without reciprocal 
arrangements, because the people bought in excess, expecting a change 
of status. I would like to call the attention of the committee to a 
special consular report published in 1895, volume 10. nt-^ 

Adjourned. 



STATEMENT OF MR. AUGUSTINE GALLAGHER, OF KANSAS CITY. 

Mr. Chairman and Gentlemen of the Committee: In represent- 
ing the Southwestern Winter Wheat Millers' Association before you, Mr. 
Jones and myself represent what we may term only one section of the 
milling industry of the United States, but we are here with the assurances 
that when we represent our section we represent every miller in this 
country, and that any statement we make to-day has been canvassed 
thoroughly and is not the statement of ourselves, but of the people we 
represent. 

First, we would have you understand that this representation is ot 
the first manufacturing industry in the United States. The extension 
of the commerce of this country, if you take the care to inquire into it 
with the object of ascertaining what interest was responsible for it, is 
simultaneous with the advance of the Hour-milling industry of this 
country. The volume of business transacted by the flour mills of the 
United States is greater than that of any other manufacturing industry 
in the United States. As I will show you before I finish, the flour mills 
of the United States pay more money for wages and for material from 
which to manufacture products than any other industry in the United 
States. It is a business not susceptible to the control of combinations 
or trusts. It is scattered over 2,800 counties of this country; almost 
every Congressional district of the laud is represented by from 1 to 100 
mills, and the people who have built up this industry are crying through 
this committee to Congress for relief. They must have it, so they say, 
and they believe they are able to present an argument which will show 
you that they need it. We do not ask protection in the shape of what 
might be termed, by people who do not believe in ultraprotection 
theories, as class legislation; they do not want it. They merely ask a 
fair chance to do business on a competitive basis, and we are not 
intending to make any argument either in favor of protection or against 
it, or with reference to any policy of a political nature. 

MAGNITUDE of the milling industry. 

In 1893 there were in the country in successful operation at least 
18,470 flour mills, and we believe there were more than that. These 
are figures of the census of 1890, and as there was quite an impetus 
given to milling through the Blaine policy of reciprocity, mills were built | 
and successfully operated, so there were at least as large if not a larger 
number of mills in successful operation in 1893, as stated in the census 



220 RECIPROCITY STATEMENTS. 

of 1890. To-day there are more than 2,000 mills of that number idle, 
absolutely closed down. 

The Chairman. Since what date? 

Mr. Gallagher. Since 1893. 

Mr. Tawney. One further question before you proceed. How many 
men did the closing of these 2,000 mills throw out of employment? 

Mr. Gallagher. Now, Mr. Tawney, I could not answer that accu- 
rately. 

Mr. Tawney. I only want it approximately. 

Mr. Charles G. Jones. There are ten men to the mill on an average. 

The Chairman. Is not that a pretty large estimate? 

Mr. Jones. No, sir. 

Mr. Gallagher. In 1893 we exported 1G,421,982 barrels of flour. 
In 1891, before we had any reciprocity treaties or the advantages of 
reciprocity were extended to the trade, we exported 11,114,054 barrels 
of flour. Now, last year, on the crop of 1895, the year 1895, as millers 
figure it, we exported 15,268,192 barrels of flour, or a loss from the year 
before of 1,590,641 barrels. 

Now is a very opportune moment to discuss the point we desire to 
make before the committee. Mr. Tawney has made an inquiry as to the 
number of men who were thrown out of employment. I have observed 
in all arguments before Congress, and before committees through 
which we desire to reach legislation, the question of the number of men 
employed and the wages paid has been the paramount question at all 
times, and it is to-day. 

EFFECT UPON THE PRICE OF WHEAT. 

We dare say that the millers of the country have never to a very 
great extent asked for legislative assistance, and consequently you 
have not heard much from the millers. Yet, we would have you under- 
stand that we believe the milling industry of the United States is 
responsible to day, was last week, will be to-morrow, or next year, if 
it exists, for from 5 to 10 cents a bushel on every bushel of the 
600,000,000 bushels of wheat we produce in this country, more than 
the speculative price, or the world's competitive price, for that wheat if 
the country had not this milling industry. Consequently, when we pay 
5 cents per bushel more for every bushel of wheat grown in this 
country, on account of the milling industry, we pay $30,000,000 to the 
farmers of this country, and when we pay 10 cents per bushel more, 
as we are doing to-day, we pay $60,000,000 to the farmers of this coun- 
try before we have got the wheat in our bins; and, gentlemen, that is 
more money than the milling industry ever earned in any given year, 
above the cost of labor and the cost of material. What other American 
manufacturing industry can equal this record? 

Mr. Tawney. How do you figure that in consequence of the milling 
industry the farmer receives 10 cents more per bushel for wheat? 

Mr. Gallagher. I said from 5 to 10 cents. 

Mr. Tawney. Well, from 5 to 10 cents, whatever the amount is, more 
than the producer would otherwise have received. How is this increase 
in the price accounted for by the existence of the milling industry? 

Mr. Gallagher. As you know, gentlemen, the milling industry of 
this country is not protected. It is not susceptible of protection. 

The Chairman. It is protected by 3,000 miles of ocean. 

Mr. Gallagher. This is good protection, but what I mean to say is 
it does not go far enough. 



RECIPROCITY STATEMENTS. 221 

Mr. Tawney. You mean legislative protection? 

Mr. Gallagher. Yes, sir. As I stated at the outset, whatever I 
shall say, I shall not attack any political theory ; I am not here for that 
purpose and do not want to do it, and do not want to be understood as 
doing it. An import tariff does not protect an export industry. That 
is the point I desire to make. The reason American millers can pay 
more for wheat and grind it into flonr, and sell the flour in the markets 
they can enter in competition throughout the world, is on account of 
their inventive ability and progressiveness; that is all. This same 
thing exactly is revealed in the making of a reaper, in the making of a 
mower, and in the making of a plow. These industries you say are 
protected, notwithstanding there is not a farmer in the United States 
who will take as a gift any one of those machines or implements made 
anywhere else in the world; consequently, there is nothing else respon- 
sible except inventive genius, the freedom of the people of this country 
to try and triumph, and that is what they have done; and besides that, 
they have cheap land on which to grow wheat. 

REASONS FOR THE LOW PRICE OF WHEAT. 

Mr. Gallag-her. I will be very glad to answer any questions at any 
point, not that I have studied speaking, because I never did anything 
like this before. Now, as a- matter of fact, you brought the question up 
which I was glad to hear. Chicago is paying less for wheat than Min- 
neapolis to-day, by several cents. You all know that, and if you do 
not you can buy a paper and read it. 

Mr. Tawney. That is due to what? 

Mr. Gallagher. That is due to the influence I am going to describe 
to you. Kansas City is paying 10 cents a bushel more for wheat than 
Chicago. Kansas City is a Southwestern city, Minneapolis is a North- 
western city, and Duluth is also a Northwestern city, and they too 
are paying more than Chicago. St. Louis is a Southern city, viewed 
from Chicago, and St. Louis is paying more than Chicago. New York 
is paying more than Chicago. Every market in this country is paying 
more for wheat than Chicago, right along. Chicago is a speculative 
market, gentlemen. It is the grain market — the market where eleva- 
tors are built to store grain — and it gives the value that the world gives 
to grain. Is not that plain 1 

The Chairman. How can Chicago get wheat from the West if they 
pay 10 cents a bushel more for it in Kansas City ? 

Mr. Gallagher. Kansas City buys and uses the wheat, but the 
producers have a surplus, besides which there are some other things 
which enter into this question which I am not prepared to discuss 
before this Committee that come under the head of transportation, 
freight rates, rebates, etc. • 

The Chairman. But freight rates are not 10 cents per bushel from 
Kansas City to Chicago? 

Mr. Gallagher. No, sir; but Kansas, Dakota, Minnesota, invaria- 
bly, nine years out of ten, have a surplus of grain that Chicago is able 
to buy and ship in at low freight rates. 

Mr. Dolliver. And it seems to me that Kansas City, instead of pay- 
ing 10 cents more for wheat, would take a whack at that surplus. 

Mr. Gallagher. It costs 6 to 8 cents to get wheat from Chicago to 
Kansas City, and when the surplus is held at Chicago, as is now the 
case, Kansas City millers can buy grain in Chicago cheaper than at 
many Western points. This is, however, not always the case. 



222 RECIPROCITY STATEMENTS. 

The Chairman. How do you explain that Kansas City millers are 
paying, say, 4 cents a bushel more than they are required to under your 
statement? 

Mr. Gallagher. Because they buy wheat in Nebraska, say, and 
bring it into Kansas City for part of the through rate, sending the flour 
South on the balance. 

The Chairman. But they are running the business for the profit in it ? 

Mr. Gallagher. Certainly. 

The Chairman. If they can buy the same wheat in Chicago for 4 
cents less than in Nebraska, why do not they do so ? 

Mr. Gallagher. They do not buy the same wheat. We take the 
best wheat and Chicago takes the surplus. Besides, the rate of freight 
from Chicago is higher than from many points tributary to Kansas 
City. 

The Chairman. Then your statement is not accurate? 

Mr. Gallagher. It is when I say the milling industry is responsible 
for from 5 to 10 cents higher prices on the wheat product of the country. 

The Chairman. But you say it is from 5 to 10 cents a bushel higher 
in Kansas City than in Chicago, and I understood your statement re- 
ferred to the same quality of wheat? 

Mr. Gallagher. I expect my statement to be borne out by the facts 
I will present. 

The Chairman. The milling trade can not pay any more for wheat 
than anybody else, can it? 

Mr. Gallagher. Yes, sir. 

The Chairman. How do you make that out? 

Mr. Gallagher. Because we have in the United States the best 
millers in the world, and admitted to be; we have the best machinery 
in the world, and our millers can make flour cheaper than any other 
millers in the world, and they do it. 

The Chairman. The point I am getting at is, do you pretend to say 
these millers are paying 4 to 6 cents a bushel more than the market 
price for the wheat they buy? 

Mr. Gallagher. To-day? 

The Chairman. Or at any time. 

Mr. Gallagher. Yes, sir ; more than 4 to 6 cents above the Chicago 
market price. 

The Chairman. More than the market price? 

Mr. Gallagher. Yes, sir; the Chicago market price is more than 4 
to 5 cents per bushel less than the market price in Kansas City; you 
understand me? 

The Chairman. They pay the market price in Kansas City, and no 
more and no less? 

Mr. Gallagher. They often pay more than the market price in 
Kansas City. But when you come to the selling of a bushel of wheat 
in this country, if you sell it through New York, they will quote the 
Chicago price to you, freight added, unless the milling demand war- 
rants a higher value. It is the price of this country — the Chicago 
price — and based upon the speculative price of the world. 

The Chairman. But let me understand you here. The millers do 
not form an eleemosynary institution in this country, and are not pay- 
ing any prices they are not required to pay in buying their wheat. 
Now, I do not understand your statement, and I would like to have you 
elaborate that a little, when you say Minneapolis was paying so much a 
bushel more for wheat than Chicago, and 10 cents a bushel more than 



RECIPROCITY STATEMENTS. 223 

was being paid in Kansas City, when the millers could buy it in Chi- 
cago and transport it for very much less than you claim they are giving. 
I do not understand that at all. 

INTRICACIES OF THE WHEAT TRADE. 

Mr. Gallagher. Now, you take Mr. Tawney's State. Only the 
other day a Minneapolis miller bought 1,000,000 bushels of wheat, at 
the May price and paid cash for it, and put it in his elevators. Now, he 
wanted that wheat. The May price was an option price 2J cents in 
advance of December price, and the carrying charges were a cent dur- 
ing the period which would intervene. There is an instance where a 
miller has paid above the Chicago price and paid a premium on the 
Minneapolis speculative price to close transaction. I could not pretend 
to explain all the reasons why he did that, but he did it, and other 
millers do it, and they grind the wheat and make money on it if condi- 
tions are anything like favorable; that is, they manage to do business. 

The Chairman. Do millers have anything to do with fixing the 
market price of wheat in this country? 

Mr. Gallagher. Not excepting as they compete in buying wheat. 

The Chairman. Do they, as a matter of fact? 

Mr. Gallagher. Yes, sir. 

The Chairman. To what extent? 

Mr. Gallagher. To the extent stated, I should say at all times 5 
cents a bushel, and times are when a great deal of the wheat product 
of the country, through the influence of the millers of the country, 
reaches the prices of 10 cents per bushel more than if the country had 
not the mills. You will pardon me, Mr. Tawney, you know of the 
statement of the railroad and warehouse commissioners of your State. 
In the State of Minnesota they are required to get the price of wheat 
in Liverpool and in Duluth and report the difference, freights consid- 
ered, once a week. How often have you seen as much as 9 and 10 
cents difference? 

Mr. Tawney. It frequently occurs. 

Mr. Gallagher. We are not on an export basis, traders say, by so 
many cents, and they never think of blaming anyone but the miller 
for putting prices up. If you gentlemen can assign any other reason 
why our grain is not on an export basis, when we have surplus wheat 
in this country, and we have been having a surplus for ten years ; if 
there is any other reason we will be pleased to have it presented. 

Mr. Dolliver. I think Mr. Hopkins's idea was that these people who 
pay 10 cents more than the market price for wheat, and have met the 
expenses of their business, is one reason why it has not been very 
prosperous ? 

disbursements of the milling industry. 

Mr. Gallagher. I dare say if Mr. Hopkins was to see what the 
expenses were, and what the millers' actual profit nowadays is, he would 
be more surprised than by my statement. 

The census of 1890 states that the millers paid $431,152,290 for mate- 
rial for grinding, and they paid $27,035,742 for wages. The flour mil- 
lers do not employ as many men as manufacturers in some other lines. 
They sold their product that year — and that was one of the most pros- 
perous years in the history of milling in this country (1893 the volume 
was a little bigger, but was no better from a profit-yielding standpoint) — 
they sold that product for $513,971,474. After paying for their labor 



224 RECIPROCITY STATEMENTS. 

and their material they had left $52,763,000. That much was left to 
pay interest, taxes, insurance, wear and tear of plants, dividends and 
profits — a scant 10 per cent. Those are the figures of the Government. 
Some of the biggest mills passed their dividends; not many, but some 
of the prominent mills of the country did worse than that. That rep- 
resents the industry that furnishes the staff of life. I merely present 
these figures to show you the contrast, gentlemen. 

Now, as to what we wear, the cost of material and labor, and the 
cost of producing the clothing of the country. The labor cost $111,- 
889,000, the material cost $179,425,000, and the output of the clothing 
of this country was sold in the year 1890 for $378,022,000, yielding a 
margin to our merchants above all the cost of material and cost of labor 
of $87,207,000. 

Mr. Dolliver. Do you regard that as an accurate statement of the 
profits? 

Mr. Gallagher. This is an accurate statement of the business. 

Mr. Dolliver. You speak of the profits of a business, calculating 
only the cost of labor and material; do you regard that as scientific 1 ? 

Mr. Gallagher. No, sir ; I do not regard it so, because I said just 
a moment ago in my statement, "above the cost of labor and mate- 
rial;" that the millers had the per cent stated to pay insurance, taxes, 
wear and tear of their plants, dividends and profits, the same as the 
clothing manufacturers. These statements are exactly paralleled, 
merely to show a comparison. 

So that the clothing business had, after paying for material and labor, 
almost 21 per cent to apply to taxes, insurance, interest, profits, and 
dividends. In the lumber business, the business of furnishing the lum- 
ber for the houses in which we live, the margin is also high. I am talk- 
ing about the bread we eat, the clothes we wear, and the houses we live 
in, and the labor and material and the manufacturers that are inter 
ested in producing these things, and it is certainly a fair question, in 
my mind at least. These figures all are from the census report. The 
lumber interest, and this includes planing mills, lumber camps, and 
everything in the lumber business, paid for wages $87,784,000 — I do 
not give the odd dollars — paid for material $231,555,000. They sold 
their products for $403,667,000. There was left a margin to apply to 
the charges stated $84,327,000, or a little matter of 20 per cent. Gen- 
tlemen, both of these industries show a margin from which profits are 
derived, if at all, of more than double that of the flour milling industry 
of this country at its most prosperous period. Now I have stated to you 
that since these figures were taken 11 per cent of the mills of the 
country have been shut down. Last year in round numbers we lost a 
business abroad amounting to 1,600,000 barrels of flour. 

the profit and loss of reciprocity. 

Mr. Dolliver. In what countries abroad did we lose that flour 
trade? 

Mr. Gallagher. We lost in Brazil, a country in which we gained 
very greatly on account of reciprocity. 

The Chairman. Give us the accurate figures. 

Mr. Gallagher. In Brazilian trade 145,575 barrels of flour were 
lost in 1895. We made a gain during the existence of reciprocity 
treaties. The records show that in 1894 we sold Brazil 817,000 barrels 
of flour. The figures I have here for 1892 Brazilian flour trade repre- 
sent a crop year, and would nof^be presentable in this report as Gov- 



RECIPROCITY STATEMENTS. 225 

erDmeiit bureau figures. The gain I referred to is the gain of the 
difference between 817,000 barrels of flour exported to Brazil in 1893 
and 921,000 barrels of flour exported to that country in 1894. 

The Chairman. The increase the first year under the McKiuley law 
was something over 100,000 barrels? 

Mr. Gallagher. Yes, sir. But in 1896 

The Chairman. After the repeal of the McKinley law? 

Mr. Gallagher. Yes, sir; after the abrogation of the reciprocity 
treaty we dropped back to 775,425 barrels. 

Mr. Dolliyer. This is in Brazil alone? r 

Mr. Gallagher. In Brazil alone we lost a trade amounting to 
145,575 barrels of flour. Brazil did not only abrogate that treaty, but 
placed a duty of 42 cents a barrel on our flour at that time; and you, 
gentlemen, are all aware that one of the chief competitors this country 
has in the production of breadstuff's is the Argentine Republic, and that 
to day, of all the breadstuff-producing nations in the world, there is no 
nation, unless it be Bussia, that is making the efforts the Argentine 
Republic to-day is to establish mills and to control the Brazilian flour 
trade, while American mills sutler from the disadvantages of the tariff 
mentioned. 

Mr. Tawney. You operated for three and a half years under the 
reciprocal arrangements between Brazil and the United States? 

Mr. Gallagher. Yes, sir; and we made a gain every minute of the 
time. 

Mr. Jones. We had 4,000 barrels of flour in transit to Cuba when 
the treaty expired. We were asked to pay duty when it landed, but, by 
having the authorities at Washington and the authorities in Cuba confer 
they agreed that all flour in transit at the time of the signing of the 
bill by the President of the United States should be landed free, but 
that on the coast could not be. 

The Chairman. Do you sell your flour in Brazil for 40 odd cents a 
barrel more than you did before you were compelled to pay this addi- 
tional duty. In other words, do you make the 42 cents a barrel out of 
the American producers or out of the Brazilian consumers ? 

Mr. Gallagher. I do not know how to answer that exactly, for the 
reason I do not fully understand what you wish to show. 

Mr. Tawney. Are you exporting flour to Brazil now? 

Mr. Gallagher. We are. 

Mr. Tawney. Then, when you sell to the dealer or consumer over 
there, do you add that 42 cents duty to the price of the flour and sell 
your flour that much higher? 

Mr. Gallagher. We have to do it; we can not do anything else. 

The Chairman. You sell your flour that much higher, then? 

SALES OF FLOUR IN THE WEST INDIES. 

Mr. Gallagher. Yes, sir; we have only 10 per cent margin above 
the cost of raw material and labor, at our best. Oh, yes; we have to 
do it. It is the superiority of our flour that permits it to go in there at 
all. We had a reciprocal arrangement with Spain for Cuba and Puerto 
Rico. In 1893-94—1 will give it that way, from June, 1893, to the 1st 
of July, 1894— we sold to Cuba 602,248 barrels of flour. We sold to 
Puerto Rico during that year 200,813 barrels. This statement will give 
you the contrast between flour trade under reciprocal treaties and 
without that influence. To Santo Domingo we sold that year 44,173 
barrels, and to the West Indies outside of Santo Domingo — that includes 
H. Rep. 2203 15 



226 RECIPROCITY STATEMENTS. 

all of tliem down in that sea — we sold 937,556 barrels, making a total of 
1,844,790 barrels in 1893-94 crop year. Now, commencing with the crop 
we were beginning to grind on July 1, 1894, and counting to the end of 
1895 

Mr. Dolliver. A similar period of 1894 and 1895? 

Mr. Gallagher. Yes, sir; we sold to Cuba 379,856 barrels and we 
sold to Puerto Eico 118,617 barrels, and to Santo Domingo 41,836 bar- 
rels, and to the other West Indian Islands 951,492 barrels, making a 
total of 1,491,801 barrels of flour. 

Mr. Tawney. That is a loss of how much? 

Mr. Dolliver. I make the loss 499,000 barrels. 

The Chairman. If you have an analytical statement of the whole 
subject you might leave that with the clerk of this committee, and we 
will use it with your statement. 

Mr. Tawney. I think it would be well to file a detailed statement 
with respect to the losses sustained by these countries as the result of 
the abrogation of reciprocity treaties ? 

LOSSES ON THE SALES OF FLOUR IN THE WEST INDIES. 

Mr. Dolliver. We appear to have lost on the sale of flour to the 
markets mentioned 499,000 barrels. How much wheat does that repre- 
sent? 

Mr. Gallagher. Five bushels to the barrel is a full average. 

The Chairman. Have you given the loss with all the various coun- 
tries with whom we had reciprocal relations under the McKinley Act? 

Mr. Gallagher. That is the principal loss, because those are the 
chief countries we had reciprocal trade relations with. 

The Chairman. Have you figured out so you can give us the num- 
ber of bushels of wheat that this loss represents to the farmers of this 
country ? 

Mr. Gallagher. Our loss in flour exports the past year represents 
the loss of 8,000,000 bushels of wheat. It not only represents the loss 
of 8,000,000 bushels of wheat sold abroad, but represents a loss of the 
beneficial influence that additional flour making would have on the 
American wheat markets and the milling and mill-building industries. 

Mr. Dolliver. Now, if the sales have fallen off on these islands 
500,000 barrels of flour, and each of those barrels represents 5 bushels 
of wheat, that would be 2,500,000 bushels of wheat? 

Mr. Gallagher. You are calculating only our loss of trade in one 
section, while my estimate relates to our total loss. You will note that 
our loss is largely where we had reciprocal treaties abrogated, with 
Brazil, Cuba, and Porto Eico. American millers gained trade in some 
quarters, but sustained the net loss mentioned, 1,590,000 barrels, last 
year. 

The Chairman. You are gradually extending your trade with various 
countries, but the loss you give us to-day is the loss you have expe- 
rienced by reason of the repeal of the reciprocity clause of the McKin- 
ley Act. 

THE FLOUR TRADE WITH FRANCE. 

Mr. Gallagher. On account, they tell us, of our high tariffs on some 
products France has excluded us from French markets. 

Mr. Dolliver. By a prohibitory or high tariff? 

Mr. Gallagher. By a high tariff and the granting of a rebate to 
the millers of France who are exporting flour, for the purpose of kill- 
ing the American milling industry. 



RECIPROCITY STATEMENTS. 227 

The Chairman. Do you say the French millers get a rebate for sell- 
ing to citizens of France? 

Mr. Gallagher. For exporting flour milled in France. 

Mr. Tawney. Tne export miller, as I understand, gets a rebate of 
about 25 cents a barrel? 

Mr. Gallagher. Two francs, 38 cents, a barrel, I believe. 

The Chairman. That does not keep you out of France? 

Mr. Gallagher. Yes, sir. 

The Chairman. How does that affect you? 

Mr. Gallagher. They let our wheat in cheaper than they do our* 
flour. They buy our wheat and mill it into flour, and export it to get 
the drawback. 

Mr. McLaurin. That ought not to injure you if it makes a market 
for the raw product? 

Mr. Kerr. The duty on the wheat is only about half of that on flour. 

Mr. Gallagher. We are not making an argument in favor of sell- 
ing wheat; you let wheat alone, it will sell itself. 

The Chairman. What 1 am getting at is this: You say you are 
affected by being kept out of the market of France, and then you cite 
the fact they are exporting flour from there, and giving a rebate on 
exports. With that fact alone I can not see how it keeps you out of 
France. 

Mr. Tawney. It gives the French miller that much profit over the 
American miller. 

The Chairman. Not in his own country? 

Mr. Tawney. That is not the point we are at. It is not what they 
are doing outside of France as what they are doing inside of France. 

The Chairman. The French miller does not get any rebate for what 
is eaten in France? 

Mr. Tawney. That is exactly what he does. 

Mr. Gallagher. I think you are mistaken, Mr. Tawney. 

Mr. Tawney. He mills the wheat in France, and when he exports that 
wheat in flour he gets a rebate or bounty, you can say, of 38 cents a 
barrel. 

Mr. Kerr. And takes it to England, where it is entirely free, with 
the advantage of 38 cents ? 

The Chairman. That affects Ed gland and not France, and we are 
getting at the statement of the gentleman of the effect in France. 
This rebate cuts no figure in the French market? 

Mr. Gallagher. We will keep on that line for a few moments. 
Every manufacturer knows if he can keep his plant going he can 
employ his labor cheaper. If a man runs a big plant he can reduce the 
cost of the product. For instance, there are mills making flour at 15 
cents a barrel, and in other mills it costs from 30 to 40 cents a barrel 
to make flour. Now, the milling industry of France was decaying; it 
was in a bad state. I tell you the millers of the United States make 
good flour and they are bad people when it comes to competition of 
lines of unrestricted trade, and there is nobody who can beat an Ameri- 
can if you give him a show. That was a good trade and one highly 
valued by the mills throughout this country, and, while I am on the 
French subject, we will just include Germany 

REASONS FOR THE DIFFICULTIES IN FRANCE. 

The Chairman. No, keep on France until we get through with that. 

Mr. Gallagher. The producers, through the milling organizations 

of France, worked up an influence to induce that country to put a dis- 



228 RECIPROCITY STATEMENTS. 

criminative, prohibitive tariff on American flour, and it admitted Amer- 
ican wheat on such terms that it would not only prohibit all outside 
flour from entering their markets for domestic consumption, but they 
would be able, in the meantime, instead of being idle, to buy foreign 
wheat, mill it, and, by reason of the rebate, export it and take away 
the trade of any other country. 

The Chairman. Now, right there; that is legislation in France 
respecting her domestic industries. Where does the reciprocity clause 
you speak of interfere with that? 

Mr. Gallagher. There is, a little further on, a notation in that bill 
under the head of retaliation. 

The Chairman. Leave that part out. I understand by reason of the 
repeal of the reciprocity clause of the McKinley bill you had been 
injured in France? 

Mr. Gallagher. No, sir; by reason of the advance of our tariff on 
account of which France retaliated. 

The Chairman. Were you affected in any way in France by the 
repeal of the reciprocity clause of the McKinley act? 

Mr. Gallagher. No, sir; we had no reciprocity treaty with France. 

The Chairman. I understood, earlier in your statement, that you had 
been driven out of France, and I took from the trend of your argument 
it was because it was legislation resulting in the repeal of the reciproc- 
ity clause, and I did not understand that. Now you and I understand 
each other. Then you are not affected at all by any legislation in this 
country 

Mr. Gallagher. Not exactly so. We are affected because in a mat- 
ter of about six months after the McKinley bill was put in operation 
we advanced the tariff on several French products, I do not know to 
what extent and I am not prepared to state exactly, but we did, and it 
was well known and generally discussed, and France proceeded to enact 
and put in operation a law, as I told you, discriminating against our 
breadstuff's. 

The Chairman. That was brought out for the protection of the 
domestic industry there in France — for the protection of the millers of 
France against the competition of American millers? 

Mr. Gallagher. Yes ; but we think it is reasonable to assume it is 
retaliatory against this country. 

The Chairman. Do you know what articles produced in France 
were advanced in the Wilson bill? 

Mr. Gallagher. I stated I could not give you that statement 
accurately. 

THE RETALIATORY MEASURES OF FRANCE. 

Mr. Tawney. Mr. Gallagher is speaking now of the advance of duty 
under the McKinley Act. These retaliatory measures were enacted in 
France after the passage of the McKinley Act? 

The Chairman. Not after the passage of the Wilson bill? 

Mr. Gallagher. No, sir; they were in effect before the Wilson bill 
passed. 

The Chairman. When did the trouble of the American millers begin 
with France? 

Mr. Gallagher. About six months after the operation of the 
McKinley Act. Now, if we understand the condition of trade in 
France, we will go to the consideration of Germany. 

Mr. Dolliver. Let us confine ourselves to those countries with which 
we have reciprocal treaties. 



RECIPROCITY STATEMENTS. 229 

Mr. Tawney. I think the inquiry of this committee ought to be con- 
fined to those countries with which we had reciprocal arrangements and 
those countries which impose a restrictive tariff upon this product or 
other products, because we want to find out what countries are impos- 
ing restrictive tariffs and excessive restrictions. 

The Chairman. Have you any definite information as to whether 
the tariff on American flour in France is placed there as discriminating 
against the American products? 

Mr. Gallagher. There is no doubt about it. 

The Chairman. What evidence have you on that? 

Mr. Gallagher. The fact that they placed it against our flour and 
buy our wheat. 

Mr. Dolliver. Might not the object be to build up a great domestic 
industry in their own country? 

Mr. Gallagher. Suppose that is the object, and we can prevent it, 
what of it? 

Mr. Tawney. It has the effect of discriminating against the milling 
industry of the United States? 

Mr. Dolliver. I believe we discriminated in the same way by 
admitting raw materials free. 

The Chairman. We put a tariff on tin plate for the purpose of build- 
ing up the industry here, and that injured Wales very much. 

Mr. Kerr. What objection is there to Wales retaliating against us? 

The Chairman. But we did not legislate in the way of retaliation. 
I do not think any Government does that. This Goverement never 
has, to my knowledge. 

Mr. Gallagher. Do you not recollect the beef retaliation? We 
opened up the markets of Germany. 

The Chairman. That was to meet an emergency that existed there. 
We always legislate for the purpose of developing home industries, and 
then if knowledge is brought to this country that some foreign Govern- 
ments are retaliating upon us because of our effort to protect American 
citizens, why then we have, as in the instance of meat products, author- 
ized the President of the United States to retaliate. 

Mr. Tawney. There is one question I want to ask you. Does France 
impose upon the wheat of the United States imported into that country 
a higher duty than wheat imported into that country from any other 
country? 

Mr, Gallagher. I am inclined to think that France lias now in 
operation — I am not positive, but it has been stated that Russia has, 
by the terms of some recent treaty, au advantage in France in the sale 
of wheat. 

Mr. Tawney. So that if France is not imposing a higher duty upon 
American flour than it imposes upon the flour imported from an y other 
country, then there is no discriminating tariff against us in favor of 
other nations? 

Mr. Gallagher. No; not under those circumstances; but there is a 
discrimination against our flour in favor of wheat, and, to that extent, 
discrimination against an American manufacturing industry. 

Mr. Tawney. It could not be a discriminating tariff unless that tariff 
was higher on a product exported from this country? 

The Chairman. Unless the American product had to pay a certain 
per cent more than the Russian product or the Argentine product? 

Mr. Gallagher. That is one view of it, but yet it discriminates 
against our flour in favor of our wheat. 

The Chairman. You can assume that simply they did not put a 



230 RECIPROCITY STATEMENTS. 

higher duty on that; it is no discrimination against us; it is a domes- 
tic arrangement that France has a right to indulge in without any 
complaint on the part of America. The only instance where we can 
make any complaint is if France imposes a higher duty upon the wheat 
or flour that is shipped from America than she does on the product of 
the Argentine Republic, Russia, or any other wheat-producing countries. 

Mr. Tawney. Do you find that our flour pays a higher duty than 
flour imported into France from any other country 1 ? 

Mr. Gallagher. I do not know of an instance of that. Russia has 
an agreement with Germany by which even her grain goes in ahead of 
ours and our millers are shut out entirely, and they only buy our grain 
when they need some fragments. There is a discrimination against our 
flour. 

THE DUTIES ON FLOUR IN CUBA. 

Mr. Tawney. I want to ask one question in relation to Cuba. Tou 
say immediately upon the abrogation of the commercial arrangement 
with Spain that Spain imposed a higher duty upon flour imported into 
Cuba, and that higher duty applied only to American flour? 

Mr. Gallagher. Yes, sir. 

Mr. Tawney. And it was how much per barrel? 

Mr. Gallagher. It was sufficiently more per barrel on American 
flour than on any other flour entering Cuba to shut it out. 

Mr. Tawney. It was $4.13 a barrel? 

Mr. Gallagher. Through the efforts of Mr. Gresham — I represented 
the millers before the State Department and presented the case, and 
through the efforts of Mr. Gresham and the State Department — the 
tariff on American flour entering Cuba was restored to the second 
column. 

Mr. Dolliver. So there is now no discrimination? 

Mr. Gallagher. There is no discrimination as between nations, 
Spain holding all of the advantage in those islands. 

Mr. Dolliver. You still go into the amount of nearly 400,000 barrels 
a year? 

Mr. Gallagher. Yes, sir ; I make that Cuban tariff, Mr. Tawney, a 
little higher. You know there are some port dues down there, etc., and 
that puts it at about $4.10. 

Mr. Tawney. Now the duties paid on flour imported into Cuba is 
$4.13 and some incidental charges growing out of their regulations 
added? 

Mr. Gallagher. That is it. All countries pay this duty save Spain. 

Mr. Tawney t . What was the duty before the repeal of the reciprocity 
clause of the act of 1890? 

Mr. Gallagher. Eighty- eight cents per barrel. 

Mr. Tawney. So American flour under the reciprocity treaty paid 
88 cents per barrel, and since the repeal of the reciprocity clause of the 
act of 1890, American flour pays $4.13 a barrel? 

Mr. Gallagher. Yes, sir; that is a fact. 

Mr. Tawney. Another question. During the existence of this reci- 
procity treaty, did flour imported from other countries pay more than 
88 cents per barrel? 

Mr. Gallagher. They did not import any from other countries, save 
Spain. I do not know what the tariff on flour from countries other 
than the United States was, but it was doubtless the present rate. No 
other country can sell flour there if you let Americans into the market. 

Mr. Tawney. That is due largely to the advantage the American 
producer had under the reciprocity treaty with Spain % 



RECIPROCITY STATEMENTS. 231 

Mr. Gallagher. Yes, sir. For instance, Spain gets into Cuba free. 
Spain buys our wheat and mills it in bond, as it were, and sends it into 
Cuba. Now we can pay 88 cents in Cuba and whip Spain out of the 
market, even with her going in free; we did do it. Nobody else got a 
show in there. Another point, gentlemen, if you please, I would like 
to present to you. 

THE TRADE WITH MEXICO. 

We are situated right on the border of Mexico, a nation with 
13,000,000 people. We have never sold them over 55,000 barrels o,f 
flour in a year. They are people who pay $20 a barrel for flour to-day 
for which you gentlemen are paying from $4 to $5. 

Mr. Dolliver. But they do not eat a great deal of it? 

Mr. Gallagher. Who would at that price — and poor people at that? 
There are 13,000,000 people there, nevertheless. 

Mr. Dolliver. They are not what might be called a white-bread 
community? 

Mr. Gallagher. Well, perhaps 

Mr. McLaurin. Do they buy flour there? 

Mr. Gallagher. They do not eat it; they have not got it. 

Mr. McLaurin. Then they do not buy it? 

Mr. Gallagher. The point I want to present to you is this : There 
are 13,000,000 of people there to whom we can sell breadstuff's. The 
federal tariff on flour is $7.84. 

Mr. Dolliver. Why is that? 

Mr. Tawney. It is over $10 a barrel. 

Mr. Gallagher. Gentlemen, I will get to that in a moment. There 
is an internal tariff in Mexico 

The Chairman. From one State to another? 

Mr. Gallagher. No, sir — worse; from one locality to another; for 
instance, one town will have a different tariff from another. If you 
bring a barrel of flour into the city of Chihuahua, thence to another 
town, even in the State of Chihuahua, every town puts its own tariff 
on it, and you pay it. You can get a tariff on a barrel of flour of about 
$16 in Mexico. 

Mr. Dolliver. Then it is very hard to do business with Mexico 
unless you induce them to revise their revenue system from the top to 
the bottom? 

Mr. Gallagher, I think that is a laudable understanding. 

Mr. Dolliver. I agree with you. 

Mr. Gallagher. It is a laudable enterprise, gentlemen; and that is 
a part of the business we have before this committee. As I say, there 
are 13,000,000 of people down there, and they do not raise enough wheat 
to feed 1,000,000, and their flour costs anywhere from $18 to $20 a 
barrel. 

The Chairman. And consequently they do not eat much of it? 

Mr. Gallagher. They do not. At one time we had free trade with 
Mexico on corn, and Kansas City sold in three months nearly 7,000,000 
bushels of corn to them, so that shows what the Mexican trade means 
if we could get it. If we can induce the extension of markets in Europe 
we will be glad to do it. For ourselves, if we can just extend the mar- 
kets to the South and Southwest we do not want anything better in 
the West. Now, the Wilson Act, as you gentlemen know, just now cuts 
the tariff on lead ore in two and let hides in free 

Mr. Dolliver. Hides had been in free since 1883. 



Mr. Gallagher. Well, live stock 

Mr. Dolliver. Eeduced the duty on live stock. 



232 RECIPROCITY STATEMENTS. 

Mr. Gallagher. Giving the only market possible to them — — 

Mr. Dolliver. Without asking any reciprocity*? 

Mr. Gallagher. Without asking anything. There is great gain to 
be made by both countries by a reciprocal commercial treaty between 
the United States and Mexico. I will tell you we can reduce the price 
of coffee in this country by having that sort of deal with Mexico, because 
we can reduce transportation charges 

Mr. Dolliver. If yon undertake to let lead ores in free we would 
hear from some of the fellows in that business. 

Mr. Gallagher. You can hear from all the lead -ore people in this 
country — they can come in a bunch, and they have a habit of doing 
that, but the millers have not — but you can take all the lead-ore people 
in this country, and all the iron ore people, and all the iron mills in this 
country, and steel mills, and put them together and bring them here 
and mass their influence, and you have not anything to compare, gen- 
tlemen, with the influence of the people who are interested in wheat 
and the making of flour in this country, and you will discover that. 
That is an absolute fact. 

Mr. Dolliver. That is a very emphatic statement, but the census 
indicates that the valuation of the poultry crop of the country is in 
excess of the value of the wheat crop. 

Mr. Gallagher. We do not engage in commerce with poultry- we 
eat that. 

Mr. Johnson. Our foreign commerce in that does not amount to 
anything. 

Mr. Gallagher. Since you raised the question of poultry, what are 
the exports ; I would be glad to know that? 

THE FORMER EXPORTS TO FRANCE. 

Mr. Tawney. Before you sit down I wish to correct a statement you 
made here. You stated that, when we exported flour to France, our 
export trade to France was materially injured in consequence of the 
duties imposed under the act of 1890, known as the McKinley law. I 
want to call your attention to the figures presented by the Treasury 
Department. In 1892, when we had the McKinley bill in force, we 
exported to France 210,402 barrels of flour, valued at $1,178,475, and 
in the year 1895, under the present tariff law, our export of flour to 
France was 1,102 barrels of flour, valued at $4,174; so you are mis- 
taken in saying these discriminating duties imposed by France are due 
to a high tariff imposed by the act of 1890 upon products of France 
imported into this country. 

Mr. Gallagher. Your statement of the trade of 1892, which is the 
greater volume, was accomplished before the retaliatory legislation 
spoken of by me became effective; and then you stated the trade of 
1895, which has dwindled, but which was accomplished after the French 
retaliatory legislation was in effect, all of which seems to prove my 
argument. 

Mr. Tawney. No; the motive of the legislation existed in 1890, when 
the act of 1890 was passed. 

Mr. Gallagher. I would not like to hold to that, because, as I stated, 
it was a matter of six months, or thereabouts, after the McKinley Act 
went into effect that France retaliated. I do not know the exact time, 
but you see it reflected in the figures you quote. 

Mr. Tawney. Our exports of flour, according to the Treasury state- 
ment, increased to 210,402 in 1892, and from 1892 to 1895 our exports 
of flour to France decreased to 1,102 barrels, valued at $4,174. 



RECIPROCITY STATEMENTS. 233 

The Chairman. In other words, it increased under the McKinley bill 
and decreased under the Wilson bill? 

Mr. Gallagher. That is very natural it should until retaliation 
became effective. 

Mr. Tawney. You can not attribute the decrease in our exports of 
flour to France to the enactment of the McKinleylaw, or duties imposed 
by that act ! 

Mr. Gallagher. We can, because of the retaliation against our 
products. 

Mr. Tawnev. The retaliation must have come since the McKinle^ 
Act was in force? 

M L-. Gallagher. It naturally would. The fact is, we had those reci- 
procity treaties and our trade was extending at all times, and our mill- 
ers were enabled to compete in France to better purpose because of 
the large business they were doing throughout the world. I believe 
if our markets are extended further we can produce the greater volume 
of flour still cheaper. 



STATEMENT OF MR. AUGUSTINE GALLAGHER, OF KANSAS CITY— 

Continued February 22. 

Mr. Chairman: Since I was here the other day, upon inquiry it 
developed that France has two tariff' schedules, A and B, like Spain 
more than any other nation that I could liken it to; and as we have no 
commercial treaty with France, so Mr. Emory informs me, who I be- 
lieve is a good authority, and who is in charge of the Bureau of Sta- 
tistics, we are liable at any time to be discriminated against by France, 
just as we were by Spain at the time of the abrogation of the reciproc- 
ity in the Cuban tariff. At this time France admits our wheat on the 
same basis of wheat from any other country, and our flour; and the 
chief complaint that the millers have to make is of the bounty business, 
by which they get our wheat into the country, grind it, and get a 
drawback on all they export. 

AMERICAN 3IILLERS DRIVEN OUT OF FRANCE. 

The Chairman. That practice, as I understand you, has largely driven 
the American millers out of the French market"? 

Mr. Gallagher. Not only that, Mr. Chairman, but they have gone 
into our Belgian trade and into the British trade, and the millers think 
if we can make such commercial arrangements with France, if we have 
a reciprocity law under which to act, it would bring them to time in that 
matter. In fact, we do not doubt that at all. Now, with reference to 
Russia and the Kusso-German treaty, the latest information in the State 
Department shows that we are on an equal basis with Bussia in the 
German market, and that the tariff is 88.33 per ton on wheat and 817.30 
per ton on flour. Now, I wish, with the permission of the committee, to 
arrange my former statement to conform with that. 

The Chairman. Very well. 

Mr. Gallagher. Now there were questions asked the other day 
concerning our reciprocity treat es, and for the convenience of the com- 
mittee I went into that yesterday, and I can give that statement now 
if you care for it. 

The Chairman. Very well. 

Mr. Gallagher. Our reciprocity treaty with Brazil was proclaimed 
April 1, 1891. It admitted flour free. 



234 RECIPROCITY STATEMENTS. 

The Chairman. Into Brazilian markets'? 

Mr. Gallagher. Yes, sir; in the United States of Brazil. The tariff 
on flour in Brazil now is 42 cents per barrel. The reciprocity treaty of 
this country with Spain, covering the markets of Cuba and Porto Bico, 
was proclaimed September 1, 1891. It admitted flour at $1 per 100 
kilos, about 88 cents per barrel. The present tariff is $4.16. The reci- 
procity treaty with the Bepublic of Santo Domingo was proclaimed on 
the same date, September 1, 1891, and all the breadstuffs that are men- 
tioned in the schedules are admitted free. There is a tariff now of $4.50 
per barrel on flour. The treaty with Great Britain, including Trinidad, 
Barbados, the Windward and Leeward islands, British Guiana, and 
Jamaica was proclaimed February 1, 1892, under which breadstuffs paid 
25 per cent ad valorem. Now the tariffs range from 72 cents, the lowest, 
to $1.92, the highest, per barrel. The Guatemala treaty was proclaimed 
May 18, 1892, and grain, corn meal, and all breadstuffs mentioned in the 
schedule were admitted free. There is a tariff now imposed of $2.65 per 
barrel on flour. The Honduras treaty was proclaimed April 30, 1892, 
at which time the tariff was 50 cents per barrel. That was abolished, 
and since the abrogation of the treaty there was a duty of 25 cents per 
barrel imposed. The treaty with Germany was proclaimed June 30, 
1892, at which time the tariff was $2.50 per 100 kilos, and the treaty 
reduced it to $1.74. 

The question was raised the other day as to the tariff charges of 
France on our breadstuffs, which at present amounts to 96 J cents per 
100 kilos on wheat, and the flour tariff is graduated according to the 
percentage ; we distinguish them in this country by. grades, ranging 
from family up to patent, and that is graduated from $1.54J up to 
$2.31^ per 100 kilos, showing quite a large margin in favor of the wheat 
as against the flour. In addition to which, this drawback of which we 
speak is made operative and effectually shuts our millers out of these 
markets. 

Now, the use of the word u discrimination," I find as applied by the 
milling interests of this country and applied by this committee does not 
agree. Now, the millers are satisfied they are discriminated against 
when grain is admitted on one basis and flour on another, and they 
think, in consideration of the great importance of the milling industry 
to the people of this country, that this Government should make such 
arrangements with all commercial nations as would admit them on an 
equality. 

The Chairman. That is, flour on an equality with the wheat? 

Mr. Gallagher. Yes, on an equality with the wheat. Then with the 
machinery that the American millers have at their command and the 
excellent wheat they always have, they feel able to compete with any 
people in any market unless it is taxed so it is prohibitive to all people. 
That is the phase of the question that the millers would have this com- 
mittee take into its most serious consideration, and in doing that to take 
into consideration the great importance and the far-reaching effect of 
the successful as against the unsuccessful operation of American mills. 

THE MILL-BUILDING- INDUSTRY. 

Now, there is a phase of that question I did not bring to your atten- 
tion the other day, and that is the mill-building industry of the United 
States. There are in this country to-day some thirty large machine 
shops and foundries, and many of them are manufacturing institutions 
of the very first importance, all of them devoted to the building, rebuild- 
ing, and repair of flour mills and like industries. 



RECIPROCITY STATEMENTS. 235 

The Chairman. Where are these institutions located in a general 
way? 

Mr. Gallagher. They are located in Milwaukee, in Chicago, in 
Indianapolis, in Moline, in Buffalo, in Chambersburg, in Jacksou, Mich., 
and a dozen other places, and in many of those cities the mill-building 
institutions are not only prominent in the country, but they are the 
leading institutions in those cities. 

The Chairman. Can you give an estimate approximately of the 
number of employees who are engaged in the services of these thirty- 
odd industries of which you speak ? r 

Mr. Gallagher. Well, that would be very hard to do, but I can 
give you an idea of what that would be. In Indianapolis there are 
two very prominent concerns — I expect it would not be exactly wise to 
give their names in this connection? 

The Chairman. Not necessarily. 

Mr. Gallagher. There are two prominent concerns to-day employ- 
ing a thousand men each, I presume, and they have been up to 1,500 
and 2,000 men. In Milwaukee the first manufacturing industry of that 
city is a mill-building concern. The product of the foundries, machine 
shops, of the year I have taken all my figures from, 1890, was $412,000,000. 
That is the metal machine product. Now, adding to that the wood, 
and I have made a hurried calculation from the machinery representa- 
tion in the census report, and I believe that the mill-building industry 
in this country will amount to more than 10 per cent of the machinery- 
employing industries of the country. Now, that may look big, but 
when you come to take into consideration the immense number of mills 
there are all over the country, and that they have to be repaired every 
year, if they have money to pay for it, it is an immense industry; and 
there is not an industry in the United States to-day, I dare say, that 
is complaining louder of the dull times and hard business, and it is 
altogether due to the fact that the mills are not prosperous; and they 
are not building additions, they are not buying new machines to replace 
old ones, as they believe they will be easily enabled to do if, by the 
enactment of such a law as is proposed, they should be restored to their 
old markets, and have a fighting chance for new ones abroad. 

THE CONSOLIDATION OF MANUFACTORIES. 

The Chairman. This question has been suggested to me and I would 
like to hear you upon this phase of it; that one thing that has affected 
the milling industry of the country is the fact that such a large capital 
has gone into special concerns like Pillsbury's, of Minneapolis, and 
those mills which are now controlled by an English syndicate, and they 
are enabled to manufacture flour on so large a scale that they are wip- 
ing out the smaller mills all over the country. This subject was brought 
to my attention by millers in Illinois. Now, I would like to hear from 
you on that subject, if you have any information to give me and the 
committee. 

Mr. Gallagher. Well, sir, I do not hesitate to state to you, for the 
use of the committee or for any public use you want to make of it, that 
I think that the Pi llsbury- Washburn Company you mention as one 
procures the highest grade of prices in this country. Now, it matters 
not how cheap a man can manufacture, if he does not demoralize the 
market by selling cheap it does not injure that market, does it? It is a 
matter of fact throughout the country and abroad that the prices 
obtained by that concern, and by big concerns of like character, are 
uniformly above the prices obtained by smaller mills. Now, there is 



236 RECIPROCITY STATEMENTS. 

another phase of that question which has come to my attention time 
and again and could be used very well in answer to your query. It 
happens from time to time that a miller who has neither the capacity 
for manufacturing Hour, nor knowledge of the foreign trade, takes it 
into his mind to become an exporter and he sets about it. Instead of 
being able to establish an agency abroad, or perhaps he only goes to 
New York or New England from the West, and instead of being able 
to establish an agency wherever he undertakes to reach new trade at a 
distance and engaging in the business on a competitive basis, a great 
many of them have been in the habit of consigning flour and the com- 
mission men have a merry time with them, and the result of it would 
be they would get no profit out of their business and come to the con- 
clusion that the big millers in the trade were driving them out of the 
trade. Now, I think that is untrue for the two reasons I have given, 
and for the additional reason that there has during a dull period in 
latter times, well, I will say a time or two, been attempted the forma- 
tion of a combination for the purpose of not fixing the price of the 
manufactured product, but of arranging for a certain output, that is a 
certain running time, so as not to flood the market and overstock it. 
Well, these agreements were made as nicely and looked as promising 
as anything you ever heard of. They were broken the next day, and 
they were never able to put a single one of them into effect, for the sim- 
ple reason that you can not form a combine in which there are 16,000 
to 18,000 people interested. You might get 500 to agree verbally to a 
proposition but you would not get 10 to sign a document on any such 
subject, but while the 500 gentlemen were going to do that there would 
be 5,000 go out and take their customers away from them, so I believe 
the view of the case as given you by the millers to whom you refer, Mr. 
Chairman, is not a true guide in this question. 

The Chairman. So it is not chargeable to any reduction in price so 
as to crush out the smaller millers? 

TENDENCY TOWARD LARGE CORPORATIONS. 

Mr. Gallagher. I will say the tendency in the milling business has 
been for some years toward merging small mills into larger corpora- 
tions. That has been one of the results of hard times so as to reduce 
salaries and cost of operating. For instance, there is in this river 
valley a grade of wheat that is, perhaps, not exactly matched anywhere 
else in the country, and yet beyond the ridge or mountains, as the case 
may be, on the other side another grade of wheat and it is vastly dif- 
ferent. Now, take it in Kansas, what we call Kansas hard winter 
wheat, a wheat celebrated throughout the flour-eating world. That 
wheat is produced in a section of southern Nebraska, a portion, probably 
half the State, of Kansas, and a little of west Missouri and northern 
and central Oklahoma, and as far as we know it does not do well any- 
where else. It is produced there better by many per cent than anywhere 
else in the world. Now, if that area was one-quarter as big you could 
see that those mills could reduce their expenses by going into a corpora- 
tion. Wherever there is a territory as narrow as to include — well I have 
known in Dakota from twelve to fifteen mills under one general man- 
agement, and that has been during these recent times, and that has 
been proven a failure because the association failed, and the millers have 
not been encouraged to do that sort of thing because almost every time 
they have tried it they have come to disaster, so that they have come 
to the conclusion that it is not the hope of salvation. It is a business, 



RECIPROCITY STATEMENTS. 237 

as I stated the other day, that is not susceptible of combination, and 
they must go in the open and compete with the world in the markets, 
and it is for a chance to do that, it is for the influence of this Govern- 
ment in commercial affairs to give them that privilege, that they are pre- 
senting this case at this time. 

Now I have here, which I wish to present before I close, a petition of 
the Kansas City Board of Trade and a document setting forth the posi- 
tion of the Chamber of Commerce of Cincinnati with reference to this 
bill. 

PETITION FROM BOARDS OF TRADE. r 

Kansas City, Mo., February 15, 1S96. 
AUGUSTINE Gallagher, Hotel Raleigh, Washington: 

The following was this day adopted by the members of the Board of Trade of 
Kansas City, Mo. : 

Whereas it is believed that the extension of foreign markets for American bread- 
stuffs, and the products of American agriculture generally, would be greatly facili- 
tated by the enactment of House bill" 3212, introduced by Mr. Kerr, of Ohio, and 
now being considered by the Ways and Means Committee of the House: Therefore, 
be it 

Resolved by the Board of Trade of Kansas City, Mo., That the bill above mentioned 
be approved by this body, and that our Representatives and Senators be urged to 
work for its enactment and approval. 

W. D. Charde, Secretary Board of Trade. 



Cincinnati Chamber of Commerce and Merchants' Exchange, 

Cincinnati, February 14, 1896. 
Dear Sir : Referring to conversation on yesterday morning in regard to the posi- 
tion of the Cincinnati Chamber of Commerce on the question of reciprocal trade, I 
hand you inclosed a sheet on which appears a proposition submitted by the Chamber 
of Commerce to the National Board of Trade for consideration at its recent meeting 
in Washington last month; also action taken by our Chamber of Commerce in April, 
1894, prior to the adoption of the Wilson bill, which clearly expresses the position 
taken upon the questions involved. I will say further that at the last meeting of 
the board of directors of our association, on February 4, the bill known as House 
bill 3212, introduced by Mr. Kerr, was considered and referred to a committee for a re- 
port. I am justified in assuring you that this committee will report favorable to this 
bill, taking a position by whicLi our Congressmen will be urged to support it. You 
will therefore see that our association has taken a well- defined stand on this question. 
W T ishing you success in j-our efforts, I am, truly, yours, 

C. B. Murray, Superintendent. 
Mr. Augustine Gallagher, Washington, D. C. 



Submitted by Cincinnati Chamber of Commerce to Meeting of the National 
Board of Trade, January, 1896. 

Resolved, That the National Board of Trade renews its appeal to the Congress of 
the United States to promptly adopt measures for the establishment of reciprocal 
trade relations with Canada, with Mexico, and with the States of Central and South 
America. 

Action in April, 1894, by the Cincinnati Chamber of Commerce. 

Whereas the proposed revision of the tariff threatens to disturb the relations exist- 
ing between the United States and certain countries with which reciprocity treaties 
are now in force, including countries which have developed a large increase in impor- 
tations of American products under such reciprocal relations, as, for instance, the 
Island of Cuba, where importations of American goods advanced from $9,000,000 in 
1890 to nearly $24,000,000 in 1893, the gain including such articles as machinery, 
tools, wire, engines, agricultural implements, steel bars, cut nails, boots and shoes, 
flour, and a great variety of other articles, which trade for the most part would be 
destroyed, to the great injury of American industry, under an abrogation of such 
treaties, a condition which would necessarily follow the exaction of duties on articles 
imported from such countries now on the free list : Therefore 



238 RECIPROCITY STATEMENTS. 

Resolved by the Cincinnati Chamber of Commerce, That the members of the United 
States Senate, and especially those from Ohio and adjacent States, are hereby ear- 
nestly requested to consider the full importance to American industries of results 
which would follow such interference with the growing trade with countries with 
which reciprocity treaties are in force as the abrogation of such treaties would imply, 
and that they are urged, in the consideration of the Wilson bill, to keep in view the 
necessity of maintaining measures in some form by which there shall be avoided a 
termination of conditions admitting of the continuance and extension of commerce 
in the direction named. 

By order of the president of the Cincinnati Chamber of Commerce. 

C. B. Murray, Superintendent. 

ACTION OF THE NEW YORK PRODUCE EXCHANGE. 

Mr. Gallagher. I have also in hand, bnt I will not file with the 
committee, for reasons I will state, a letter which explains the action of 
the Produce Exchange of New York. The reciprocity feature of the 
Kerr bill, the bill for extending reciprocity, was approved on Wednes- 
day afternoon by the board of managers of the Produce Exchange of 
New York, but they declined by an almost unanimous vote, I am sorry 
to admit, but it is true, to approve the retaliatory feature of it. Now, I 
think unless you want the schedule of the various treaties of all the 
South and Central American countries, which I have, I am through. 

There is one thing more I wish to state, however. There was a reso- 
lution, I believe, adopted by this committee providing for a reciprocity 
inquiry. That will take you a long time. It will necessitate a great 
deal of delay, and delay, of course, is what the millers do not want; 
and I think you will find, when you get through with that inquiry, that 
you will have figures showing that we lost just about the amount of trade 
on account of the abrogation of the reciprocity treaties that I have stated 
and which is reported in the Bureau of Statistics of the Treasury Depart- 
ment. The sum total will be that. However, if it is determined by 
the committee to continue that inquiry at that length, I will be able to 
file with you the names of the large number of exporters who were 
directly interested in that branch of the trade and who are competent 
witnesses to give evidence in the case. 

The Chairman. I think you had better send me a list of the names, 
and I will submit the matter to the subcommittee in view of whether 
they will take immediate action on the Kerr bill or other of these bills, 
or a substitute bill, or whether they will deem it wiser to get it from our 
inquiry, I do not think it is going to take the length of time you indi- 
cate, because I think with the information and such an expert as we 
shall secure and the assistance that we will have that we can gather 
this information very quickly. 

Mr. Gallagher. Well, I hope that is the case, because the milling 
interests, as you know, have looked to this Congress 

The Chairman. Eor relief? 

Mr. Gallagher. Yes j and they look to this committee, and they 
believe they are reposing a confidence in the right direction. Every- 
one connected with the trade was amazed at the abrogation of the reci- 
procity treaties, and scarcely believed it or understood it, and every day 
of delay now, as you can clearly see, indicates to those who are remote 
from the scene of action that Congress does not think that this industry 
is half as big as it is or as near as important, and that it does not amount 
to much as a matter of fact. 

I thank you very much for your kindness and for the kindness of the 
committee. 

Thereupon the committee adjourned, subject to the call of the 
chairman. 



RECIPROCITY STATEMENTS. 239 

STATEMENT OF MR. CHARLES A. PILLSBURY, OF MINNEAPOLIS. 

The Chairman. Would you be kind enough to give the reporter 
your full name, your address, and what interests you represent? 

Mr. Pillsbury. Charles A. Pillsbury; I am general manager of the 
Pillsbury- Washburn Flour Mills Company of Minneapolis, which is the 
largest milling plant in the world, and I am also president of the 
National Millers' Association of the United States; my address is Min- 
neapolis, Minn. 

The Chairman. Now you can go on and state if you have made any r 
effort to extend your foreign trade, and if so, by what means, stating 
in what countries and with what success. 

Mr. Pillsbury. I have a few remarks in writing, which I will read, 
and then I will state in regard to that. 

I appear before you, gentlemen, in behalf of the milling industry of 
the United States, to ask you to inaugurate such legislation as will give 
that industry a fair show in the markets of the world. As to our 
home markets, we ask no favors, for we can hold our own against all 
competition. 

I am embarrassed by the fact that several millers have already 
appeared before you, and I am ignorant of what they have already said 
to you, and I may possibly rex>eat many statistics which have already 
been given yon. I fear I can tell you nothing new, but can only empha- 
size what has already been said by those who have preceded me. 

You will appreciate the magnitude of the milling industry when I tell 
you that there were in the United States in 1890 nearly 20,000 flour 
mills, and the value of their product, based on the very low prices then 
prevailing, was $575,000,000. This is about $100,000,000 more than 
the iron and steel industry, and nearly as large as the wool and cotton 
industries put together. These show the overwhelming importance of 
the milling industry. 

The Chairman. That is an astonishing statement, is it not? 

Mr. Pillsbury. Yes, sir. This milling industry is confined to no 
section, but is established in all parts of our country, helping to main- 
tain the price of the cereal, and greatly adding to the welfare of the 
farming community, who are the backbone of our people. This indus- 
try has gradually grown up, with no protection from our Government, 
because, from the very nature of things, home protection is unneces- 
sary. Our exports of flour have gradually grown until in the year 
1894 they reached nearly 17,000,000 barrels. Of this amount over 
11,000,000 barrels were to the United Kingdom, Holland, and Denmark, 
which are about the only countries in Europe that give us a fair show; 
and as you well know, these countries contain but a small part of the 
population of Europe. If we had the same advantage in the other 
parts of Europe, every 'bushel of our surplus wheat would be exported 
in the manufactured article of flour. This great industry is threatened 
witb serious harm on account of the unfavorable legislation which other 
countries are continually making against us, and more particularly on 
account of the repeal of the so-called reciprocity clauses which were 
enacted a few years ago. The United States produces on an average 
of nearly 500,000,000 bushels of wheat, over one- third of which must find 
an outlet in other countries. 

THE EXPORT TRADE IN FLOUR. 

Up to the year 1894 exports had so increased that over one-half of 
this exporting was being done in the shape of flour; and it has been 
and is now the aim of the milling fraternity in the United States to so 



240 RECIPROCITY STATEMENTS. 

push their trade into foreign countries that very little, if any. of the 
wheat should be exported as raw material. 

It is not necessary for me to take the time of you gentlemen to show 
the immense advantage that this would be to this country in the way 
of giving increased labor to our own citizens. This trade has been 
growing so rapidly that nearly every other country in the world is now, 
either directly or indirectly, legislating against it.- When the so-called 
reciprocity treaties were enacted in the McKinley bill the milling fra- 
ternity of this country thought they saw a ray of hope to extend their 
trade. This was, of course, all dashed to the ground when said clauses 
w^ere repealed; and unless we get the help of the legislative bodies, 
our export trade in flour is bound to diminish rather than increase. 
To-day we have practically no untaxed selling territory abroad, except 
Great Britain, Holland, and Denmark. Our flour has been driven out 
of France, Germany, Belgium, and Sweden by heavy and discriminating 
tariffs. 

We are almost completely shut out of Mexico, and largely out of 
Cuba. Brazil and other South American countries have placed a duty 
on flour, in retaliation for the withdrawal of reciprocity privileges, 
which is causing our trade there to be supplanted with flours from 
other countries. Some countries, like France, have actually gone so 
far as to give a bonus to their millers on flour that they export of 
nearly 50 cents per barrel; and if this is not stopped, the French mil- 
lers will be able to come to America, if necessary, to buy their wheat 
and still drive the American miller out of a large number of the mar- 
kets of the world, while grinding wheat grown almost at the very doors 
of the American miller. 

I do not propose to burden you with figures; I presume your com- 
mittee will take steps to obtain all that are necessary in that direction. 

Our troubles may be divided into two heads, first, repeal of the 
so-called reciprocity treaties, and, second, unfavorable legislation by 
other countries. 

As to the first head, perhaps Brazil and Cuba are two notable exam- 
ples. Before the reciprocity treaties were enacted we were exporting 
to Brazil about 730,000 barrels of flour per annum. During the life of 
the reciprocity treaties this trade increased about 200,000 barrels per 
annum. Since the repeal of the reciprocity clauses this trade has fallen 
off nearly 150,000 barrels per annum. 

A more notable example yet is that of Cuba. Before the reciprocity 
treaties were enacted our trade in Cuba was a little over 100,000 bar- 
rels per annum; during the life of the treaty the trade grew to be over 
650,000 barrels ; since the repeal our exports of flour to Cuba have 
fallen off nearly one-half. 

These figures do not give the full effect of the enactment and repeal 
of the reciprocity treaties. From the very nature of things a consump- 
tive article like flour has to gradually grow into use. If people have 
been in the habit of using one kind or quality of flour, and cooks are 
educated in that direction, it takes a good little while for them to use 
flour of a different make and texture, and so the theory of the millers 
of the United States is, if the reciprocity treaties had been allowed to 
stand, that this increase would have gone on year by year until all the 
surplus wheat of this country would have been exported in the shape 
of flour. 

EXAMPLE OF UNFAVORABLE LEGISLATION. 

An example under the second head of unfavorable legislation I have 
already referred to: France next to the United States is the largest 



RECIPROCITY STATEMENTS. 241 

wheat-producing country in the world, and it is also one of the largest 
if not the largest, wheat consuming country in the world. They have 
placed a duty on our flour of $1.90 to $2.75 per barrel, while the duty 
on wheat is but 37 cents per bushel. This, in itself, is very largely a 
discrimination, besides which they have arranged a system of "draw- 
backs'' on llour that their millers export to other countries, whereby 
Tliere is a profit of nearly 50 cent? per barrel for the French miller to 
buy foreign wheat and then export his flour. That is to say, he gets 
nearly 50 cents per barrel more (as drawback) on the flour exported 
than he pays on the wheat it takes to make the flour. 

In Germany the duty on wheat is 32 cents per bushel. A corre- 
sponding duty on flour would be about $1.50 per barrel, but their duty 
on flourls $2.21. 

All these countries whose policies are so oppressive to the American 
trade are large exporters of manufactured goods to this country, and 
can therefore easily be reached by retaliatory legislation. 

It is not necessary for me to take up your time as to the equity of 
reciprocity. The arguments in favor of legislative aid and counte- 
nance to our mills are so evident and unimpeachable that it would seem 
as if the facts would have to be simply called to your attention in order 
to have you apply the proper remedy. That remedy can only come 
from our country's lawmakers, and it is the hope of the millers of the 
United States that the lawmaking power will not permit an industry 
upon whose prosperity millions of our citizens directly or indirectly 
depend to struggle along against heavy and increasing odds as it is 
now doing. 

We hope that your committee will make a thorough and exhaustive 
examination into this subject and bring in the necessary bills to cor- 
rect the evil as far as possible. The organization which I have the 
honor to represent, the National Millers' Association of the United 
States, and other organizations more or less local, will be happy to 
cooperate with your committee, in giving them all information upon this 
subject, and to discuss with you as to the proper remedies. I think 
Congress should pass a bill broad enough, first, to carry out the princi- 
ple of reciprocity, and enable our Government to make reciprocity 
treaties in this direction ; second, to enable our Government to place 
retaliatory duties against countries who are, like France and Germany, 
placing an unequal and unfair duty upon the manufactured products 
of our wheat. 

As I said before, we are not before you for the purpose of occupying 
your time in lengthy, tedious remarks, as we feel that you have but to 
acquaint yourselves with the facts to recognize the necessity of such 
legislation, and that when you have thoroughly investigated the sub- 
ject you will be able to recommend proper measures and to pass laws 
necessary to correct the evil. 

THE DIFFICULTIES IN THE FRENCH MARKET. 

The Chairman. I wish you would explain a little more in extenso 
the troubles which you millers have had in getting into the markets of 
France. 

Mr. Pillsbury. The trouble we have in getting into the market of 
France is, first, the duty on flour is very much larger than it is on 
wheat; but that is not all of it. The French are now crowding us out 
of other markets on account of a system of rebates and drawbacks, 
which gives a miller a great deal more drawback on the flour exported 
H. Eep. 2263 16 



242 RECIPROCITY STATEMENTS. 

tli an lie has to pay on the corresponding amount of wheat. It practi- 
cally amounts to a bounty , but it is covered up by the name of draw- 
back. Kow, we get drawbacks in this country, but it does not amount 
to anything, because we never have to import wheat; but if we did, 1 
figure it out, on bringing in wheat from Canada, the regulations of our 
shipments would have to be quite modified to overcome it. Now, they 
do not even have to export the flour made from the identical wheat. In 
this country we would have to take the wheat, grind it by itself, and 
export the identical flour. 

The Chairman. You would have to keep a separate account, so the 
Government officer could see? 

Mr. Pillsbury. Yes, sir. 

The Chairman. How long has this discrimination existed in France? 

Mr. Pillsbury. I should say three or four years ; since I have 
noticed the French shipping flour into other markets. 

The Chairman. Had you at any time, either before or after the reci- 
procity clause of the so-called McKinley law, taken any steps toward 
developing any trade in any of the South American States? 

Mr. Pillsbury. Yes; but the South American States are a little 
like the Southern States of this country, they use more winter wheat 
flour than spring wheat flour, and I am a manufacturer of spring wheat 
flour. 

The Chairman. You seek the colder countries? 

Mr. Pillsbury. Yes, sir. Now our flour goes to the north of Europe. 
Southern countries using American flour wouJd be likely to use South- 
ern-ground winter wheat ; flour from the winter wheat section of southern 
Illinois, St. Louis, Baltimore, and those flours. 

EFFECT OF THE REPEAL OF RECIPROCITY 

The Chairman. What effect, in your judgment, has the repeal of the 
reciprocity clause of the McKinley bill had upon the flour industry of 
this country? 

Mr. Pillsbury. It has steadily crippled our market for the Ameri- 
can product, and the effect has not been as bad on this last crop as it 
would have been if the winter wheat crop had been a full crop; but this 
last year the winter wheat crop was comparatively a failure. We were 
building up and largely increasing our trade every day in the South 
American countries, but now the trade is bound to diminish. 

The Chairman. Is it of any benefit to the wheat grower of this coun- 
try to have his wheat milled into flour rather than to have it shipped 
abroad and milled? 

Mr. Pillsbury. It is an immense benefit in all times of the year 
except when the farmers are fairly deluging the markets with wheat, 
and mills are paying considerably more for wheat than it would be worth 
to sell put in larger markets, shipped direct as wheat. 

The Chairman. Then, if I understand you correctly, the tendency is 
that by such legislation as will benefit the mills of this country will 
increase the price of wheat in this country to the producer? 

Mr. Pillsbury. Yes, sir ; largely because if they can make a com- 
petition for wheat at home it would give better price for wheat and the 
miller does not care how high he pays for wheat, providing no other 
competitor can come in and buy cheaper wheat. The miller would make 
more money if wheat was always a dollar a bushel than at 50 cents a 
bushel, and we would rather see it a dollar, and this milling demand is 
a continuous demand and takes it out of the line of speculators. It 



RECIPROCITY STATEMENTS. 243 

is the great lot of wheat going to these larger markets which stands as 
a menace and keeps the market down at home. 

The Chairman. It would equalize the sale of wheat over the twelve 
months. 

Mr. Pillsbury. Yes, sir ; it would be kept back iu the country. 

PEOPLE ENGAGED IN THE MILLING INDUSTRY. 

The Chairman. Could you give in round numbers the number of 
employees who are engaged in the milling interests'? r 

Mr. Pillsbury. I think I have it here — no, I have not that at hand. 
I think you can get it out of the census — Mr. Curtis can readily get 
it for you — but it must be an immense number. While the gross 
amount is ahead of any other industry, I do not think the employees 
would show up as large. There is a less percentage of labor than it 
would be in some other industry, but the gross amount shows it is the 
largest industry in the United States; very much. 

The Chairman. These 18,000 or 20,000 mills you spoke of in your 
statement I believe are scattered over the country. 

Mr. Pillsbury. They are scattered everywhere, but, of course, in 
all States that do not raise a surplus amount of wheat the mills are 
small and used for what you call " gristmills." What we call merchant 
mills are in those States which raise a surplus of wheat. 

The Chairman. In giving your direct statement you spoke about a 
practical prohibition in Mexico. How long has that existed? 

Mr. Pillsbury. It has almost always existed in Mexico. There has 
been very little American flour going into Mexico. 

The Chairman. Yet we are large consumers of Mexican produce? 

Mr. Pillsbury. Yes, sir. 

The Chairman. That is a country really where reciprocity could be 
very successfully put in operation? 

FLOUR ALWAYS FOLLOWS CIVILIZATION. 

Mr. Pillsbury. Yes, sir; but there is one peculiar thing about the 
production of wheat flour. You know that follows civilization. You 
let the missionary go into a territory and the wheat flour follows him 
as people get less barbarous and more civilized, and you find, taking it 
among the colored people in the South, that when they begin to get 
better off they begin to eat wheat flour. Another thing in regard to the 
introduction of wheat flour is where it is once introduced it always 
grows. 

The Chairman. It never goes back? 

Mr. Pillsbury. It never goes back, but increases everywhere. That 
is precisely so, and millers figure we can spend a good deal in intro- 
ducing flour because if we once get it introduced the trade always sticks 
to it. 

The Chairman. To what countries do you mostly export your flour? 

Mr. Pillsbury. The spring-wheat mills, to which our mills belong, 
export their flour to the countries of northern Europe, mostly England 
and Holland. Our own particular brands are as well known in Eng- 
land and Holland as they are in this country, and we export over 
1,000,000 barrels of flour. 

Mr. McLaurin. At what place are your mills located? 

Mr. Pillsbury. At Minneapolis, Minn. 

The Chairman. The country which is contributory to Minneapolis is 
the best wheat-growing country in the world? 



*s»: 



244 RECIPROCITY STATEMENTS. 

Mr. Pillsbury. Yes, sir; Minnesota and the two Dakotas. 
Here is a letter written to Mr. Fletcher which he desired ine to pre- 
sent to you : 

DISCRIMINATION IN ENGLAND. 

Minneapolis, Minn., March 14, 1896. 

Dear Sir: The millers of the United States have been greatly disturbed of late, 
owing to report reaching them that the dock companies of London are contemplat- 
ing an advanced charge for all American Hour landed on the quays of London. The 
system hitherto has been as follows : A ship comes up to the wharf to discharge her 
cargo. All flour that is destined for London proper is landed on the quay, is allowed 
to remain there seventy-two hours, and a charge of Is. 6d. is made per long ton of 
2,240 pounds. Any flour that a London importer may wish to distribute to the 
smaller ports along the coast he can discharge into a small vessel or lighter during 
this period of seventy-two hours, and thus avoid the charge of Is. 6d. which would 
be demanded if the cargo was discharged on the quay and then from the quay to the 
lighter or small vessel. 

The dock companies, in league with the steamship companies, now propose to make 
the charge for landing flour on the quay, 2s. per long ton; and in addition to this, 
propose to reduce the time from seventy-two hours to twenty-four hours. This is a 
greater change than would at first appear, for in times of active business our London 
correspondents inform us that it is impossible to get papers put through the neces- 
sary form within the twenty-four hours, leaving no time whatever for the loading of 
the ship into the lighters or small vessels, so that all flour will necessarily be sub- 
ject to the charge made for landing on the quay. They further inform us that wheat 
will be exempt from this charge. 

You can see plainly that this is a thrust at American millers and a direct discrim- 
ination in favor of wheat, which of course will be a great advantage to the English 
millers; and in reality this excessive dock charge which is proposed will act as a 
tax on American flour. 

It is also pointed out to us that American flour is further discriminated against, 
owing to the fact that all French flour (the importation of which has greatly increased 
during the past year) coming into London by means of smaller craft from France is 
delivered at the smaller docks along the Thames and enters London free of all dock 
charge. You can see, therefore, that there is again a discrimination against Ameri- 
can flour : First, in favor of American wheat, and second, in favor of French and 
other flours. 

We hardly need point out to you that the American miller is already hard driven, 
and that America at present can not take care of her entire output and must look to 
the foreign trade to take a large portion of her manufacture. When you consider 
that we are already cut out from Cuba and other markets, and when you consider 
that the French miller, by reason of a bounty guaranteed to him by the Government, 
is becoming a strong competitor, and when you consider this additional burden that 
will be put on American flour if the dock companies succeed in putting through this 
measure, you can readily understand the importance of taking some action to pre- 
vent such a course being carried through. The English Parliament is strongly 
opposed to discriminations of this character, and such additional dock charges are in 
reality illegal. HoweVer, the dock companies propose to carry through their meas- 
ure safely by forcing the steamship companies to insert in their bills of lading a 
clause tothis effect, and in this way they escape all danger of doing anything illegal. 
For, if the clause is inserted in the bill of lading and the miller is forced to accept 
such bill of lading, the dock companies are relieved of the danger of an illegal 
measure. 

Will you kindly give this matter your attention, as we believe it is of importance 
to one of the greatest industries of America. 

Yours, truly, Washburn-Crosby Co. 

Hon. Loren Fletcher, 

House of Representatives, Washington, B. C. 

Messrs. Washburn-Crosby telegraph me they will come down them- 
selves and appear before your committee. I will state the English 
courts sustain these bills of lading 

The Chairman. On the principle that a man who makes a contract 

n not complain. 

Mr. Pillsbury. But we are forced to sign these bills of lading. 

The Chairman. But that is not the practice in the American courts? 

Mr. Pillsbury. No; the principle of the American courts is the 



RECIPROCITY STATEMENTS. 245 

railroad companies can not relieve themselves of their common law lia- 
bility. 

The Chairman. If you ship at all you have to ship 

Mr. Pillsbury. On the ordinary bills of lading in printed form, 
which they agree upon. I do not think any statement is necessary, as 
the letter is sulheiently plain. 

The Ciiairman. What legislation would you recommend'? 

Mr. Pillsbury. I can not think of that right on the spot. 

The Chairman. We are very much obliged to you, Mr. Pillsbury. r 

Mr. Pillsbury. I am very much obliged to you, Mr. Chairman and 
gentlemen, for the courtesy you have shown me. 

Mr. Pillsbury also filed the following statistics: 

What we bought from Cuba in 1893 wider reciprocity. 
[Value in gold dollars.] 

Tobacco $9,000,000 

Cigars and cigarettes 2, 750, 000 

Bananas 1,650,000 

Cocoanuts 150, 000 

Other tropical fruits 550, 000 

Molasses 1,000,000 

Sugar 60,607,000 

Cedar, mahogany, and other woods 1, 000, 000 

Iron ore (414,000 tons) . 642,000 

Total 77,349,000 

What we sold to Cuba in 1893 under reciprocity. 
[Value in gold dollars.] 

A gricultural implements $130, 000 

Manufactures of brass 44, 000 

Bread 32,000 

Com . 582,000 

Wheat flour 2,821,000 

Carriages 316, 000 

Railway cars . 271,000 

Chemicals, dm gs, medicines, etc 280, 000 

Coal .. 931,000 

Copper 48,000 

Cotton goods 147,000 

Cordage and twine 76,000 

Glass and glassware 118, 000 

Hay 54,000 

India rubber 42, 000 

Ink 10,000 

Telegraph and telephone instruments 115, 000 

Castings and hardNvare 500, 000 

Machinery 2, 792, 000 

Nails 128,000 

Steel rails 327,000 

Saws and tools 244, 000 

Scales and balances 63, 000 

Sewing machines 96, 000 

Locomotives 419, 000 

Stationary engines 130, 000 

Boilers 322,000 

Fencing wire 321, 000 

Miscellaneous manufactures of iron and steel 1,314,000 

Lamps and chandeliers 51, 000 

Boots and shoes 115, 000 

Harness and saddlery 23, 000 

Leather and manufactures of leather 44, 000 

Lime and cement 72, 000 

Malt liquors 46,000 

Manufactures of marble and stone 77,000 



246 RECIPROCITY STATEMENTS. 

Naval stores $50, 000 

Illuminating and lubricating oils 546, 000 

Paints and painters' colors 49, 000 

Paper 160. 000 

Perfumery 26, 000 

Plated ware 20, 000 

Beef products 89, 000 

Bacon 557, 000 

Ham 761,000 

Pork 59, 000 

Lard 4,024,000 

Other meat products 81, 000 

Butter 49,000 

Cheese 32,000 

Milk 46,000 

Soap 8,000 

Stationery 31, 000 

Manufactures of straw 16, 000 

Candy and confectionery ■. 36, 000 

Manufactures of tin 25, 000 

Manufactures of tobacco 61, 000 

Trunks and bags . 18,000 

Varuish 18,000 

Beans and pease 393, 000 

Potatoes 554, 000 

Other vegetables 31, 000 

Lumber 1, 192, 000 

Cooperage materials 319. 000 

Household furniture 217,000 

Total 23,604,094 

Foreign merchandise imported by our merchants and resold to Cuba. .. 553, 604 

Total export of merchandise 24, 157, 698 

Exports of domestic merchandise to Cuba during the year ending June 30, 1894. 

Agricultural implements : 

Mowers and reapers, and parts of $8, 309 

Plows and cultivators, and parts of 81, 988 

All other, and parts of 27, 972 

Aluminum, manufactures of r 10 

Animals: 

Cattle 175 

Hogs 73 

Horses 16,230 

Mules 25,090 

Sheep 078 

All other, and fowls 862 

Art work : Paintings and statuary 4, 028 

Bark, and extract of, for tanning 280 

Beeswax 361 

Blacking 5, 558 

Bones, hoofs, horns, etc 27 

Books, engravings, etchings, etc 39, 626 

Brass, and manufactures of 42, 125 

Breadstuff's : 

Barley 584 

Bread and biscuit 34, 596 

Corn •. 571,326 

Corn meal 6,293 

Oats 29,856 

Oatmeal 3 

Rye 137 

Rye flour 56 

Wheat flour 2,473,805 

Allother, etc 47,885 

Bricks : 

Building 2,528 

Fire 61,186 

Broom corn 23, 838 



RECIPROCITY STATEMENTS. 247 

Brooms and brushes $10, 914 

Candles , 365 

Carriages and horse ears, etc 261, 175 

Cars, passenger and freight - 197, 563 

Charcoal 441 

Chemicals, drugs, dyes, etc : 

Acids 35,326 

Dyes and dyestutfs 997 

Medicines, patent and proprietary 67, 432 

Roots, herbs, etc 861 

All other 187, 020 

Cider £3 

Clocks and watches: 

Clocks and parts of 16, 427 

Watches and parts of 1, 043 

Caal and coke: 
Coal- 
Anthracite 85, 116 

Bituminous 830, 684 

Coke 2,287 

Coffee and cocoa 3, 325 

Copper, and manufactures of : 

Ingots, bars and old 2, 555 

All other manufactures of 33, 066 

Cotton, and manufactures of: Unmanufactured, other 247 

Manufactures of — 

Cloth, colored 6, 812 

Cloth, uncolored 50, 610 

Wearing apparel 4, 087 

All other 58, 674 

Dental goods 9, 794 

Earthen, stone, and china ware: 

Earthen and stone ware , 4, 442 

Chinaware 49 

Eggs 304 

Emery goods: 

Cloth 1, 1 35 

Paper . 116 

Wheels 149 

Feathers, crude 50 

Fertilizers 6, 299 

Fish : 

Fresh, other than salmon 5, 016 

Dried, smoked, or cured — 

Codfish, including haddock, hake, and pollock 61, 102 

Herring 10, 347 

Other 21,387 

Pickled- 
Mackerel 1, 250 

Herring 32 

Other 487 

Salmon — 

Canned 1,418 

Other 371 

Canned fish . . .. 2,795 

Shell fish- 
Oysters 9, 248 

O ther l, 399 

All other 1,120 

Flax, hemp, and jute, manufactures of: 

Bags 8,133 

Cord age 42, 304 

Twine 1, 934 

Allother 13,950 

Fruits, including nuts : 

Apples, greeu or ripe 25, 819 

Fruits, preserved — 

Canned 46, 260 

Other 12,866 

All other, green, etc 20, 719 

Nuts l 311 



248 RECIPROCITY STATEMENTS. 

Glass and glassware: 

Window glass $4, 076 

Allother 82,931 

Glue 7,253 

Grease, grease scraps, and all soap stock 34, 849 

Gunpowder and other explosives: 

Gunpowder 2, 318 

Allother 4,546 

Hair, and manufactures of 512 

Hay 87,700 

Hides, skins, other than furs 711 

Hops 855 

India rubber : 

Boots and shoes 2, 329 

Allother 52,477 

Ink, printer's and other 10, 308 

Instruments and apparatus for scientific purposes, including telegraph, 

telephone, and electric . 143, 501 

Iron and steel, and manufactures of: 

Pig iron 3, 910 

Band, hoop, and scroll iron 4, 504 

Bar iron 86, 015 

Car wheels 12,309 

Castings, not elsewhere specified 40, 724 

Cutlerv 23,037 

Firearms 3,080 

Ingots, bars, and rods of steel 116 

Locks, hinges, and other builders' hardware 246, 142 

Machinery, not elsewhere specified 1, 587, 706 

Nails and spikes — 

Cut 105,160 

Wire, wrought, horseshoe, and all other, including tacks 24, 210 

Plates and sheet — 

Of iron 86,719 

Of steel 12,523 

Printing presses, and parts of 12, 120 

Railroad bars and rails — 

Of iron 345 

Of steel 340,112 

Saws and tools 192, 578 

Scales and balances 53, 174 

Sewing machines, and parts of 212, 696 

Steam engines, and parts of— 

Locomotive engines 222, 109 

Boilers and parts of engines 221, 863 

Stationary engines . 62, 830 

Stoves and ranges 9, 167 

Wire 248,027 

All other manu factures of iron 885, 151 

Jewelry and manufactures of gold and silver 11, 371 

Lamps, chandeliers, and all devices and appliances for illuminating 

purposes 40, 725 

Lead, manufactures of , 9, 767 

Leather, and manufactures of — 

Buff, grain 2,077 

Patent or enameled 4, 162 

Sole :. 241 

Allother 1,513 

Manufactures — 

Boots and shoes „ 82, 554 

Harness and saddles 29, 574 

Allother 24,346 

Lime and cement 68, 259 

Malt 20 

Malt liquors : 

In bottles 40,112 

No t in bottles 16, 236 

Marble and stone, and manufactures of: 

Unmanufactured „ 21, 434 



RECIPROCITY STATEMENTS. 249 

Marble and stone, and manufactures of — Continued. 
Manufactures of— 

Roofing slate $2,643 

Allother 79,098 

Moss and seaweed 555 

Musical instruments: 

Organs 1,602 

Pianofortes 1,420 

All other and parts of 960 

Naval stores : 

Rosin 18,831 

Tar 4,293r 

Turpentine and pitch 796 

Turpentine and spirits of 36, 125 

Nickel, manufactures of 30 

Notions, not elsewhere specified 8,532 

Oils: 

Animal — 

Lard 1,107 

Whale ' 121 

Fish 1,565 

Other 4,974 

Mineral, including a]l natural oils, etc 413, 140 

Mineral, refined or manufactured — 

Naphthas, including all lighter products 439 

Illuminating 16,903 

Lubricating and heavy paraffin oil 94, 535 

Vegetable — 

Cottonseed 18,832 

Linseed 1, 737 

Other 2,335 

Allother 451 

Paints and painters' colors 54, 830 

Paper and manufactures: 

Paper hangings 230 

Allother 140,051 

Writing paper and envelopes 12, 596 

Paraffin and paraffin wax 692 

Perfumery and cosmetics 22, 228 

Plants, trees, and shrubs 1, 717 

Plated ware 14,352 

Provisions, comprising meat and dairy products: 
Meat products — 
Beef products — 

Canned 10,139 

Fresh 3,742 

Salted or pickled 4, 527 

Other cured 421 

Tallow 56,700 

Hog products — 

Bacon „ 532, 035 

Hams 668, 959 

Pork, pickled 52, 333 

Lard 3,625,545 

Oleomargarine, imitation butter 538 

Poultry and game . .". 450 

All other meat products 85, 221 

Dairy products — 

Butter 27,038 

' Cheese 30, 835 

Milk 41,732 

Quicksilver 73 

Rice 2,045 

Sand 90 

Seeds, all other 4, 196 

.Silk, manufactures of 440 

Soap: 

Toilet or fancy 9,787 

Other 2,049 



250 



RECIPROCITY STATEMENTS. 



Spirits, distilled: 

Alcohol, including pure, neutral or cologne spirits $78 

Brandy 54 

Whisky — 

Bonrbon 102 

Rye 908 

All other 210 

Starch 4, 673 

Stationery, except paper 21, 909 

Stereotype and electrotype plates 542 

Straw and palm leaf 10, 558 

Sugar and molasses : 

Molasses and sirup 22 

Candy and confectionery 28, 705 

Tin, manufactures of 26, 003 

Tobacco and manufactures, all other 38, 233 

Toys 2,876 

Trunks, valises, and traveling hags 25, 062 

Varnish . 19, 729 

Vegetables : 

Beans and pease 268, 265 

Onions 1, 448 

Potatoes 496, 875 

Vegetables canned 10, 500 

Al 1 other 20, 376 

Vessels sold to foreigners: 

Steamers 2,568 

Sailing vessels 24, 000 

Vinegar 12 

Whalebone 94 

Wine : 

In bottles 123 

Not in bottles 741 

Wood, and manufactures of: 
Lumber — 

Boards, deals, and planks 892,690 

Joists and scantling 25, 231 

Hoops and hoop poles 21, 839 

Laths 18 

Shingles 372 

Shooks — 

Box 12,067 

Other 89, 418 

Staves and headings 40, 674 

All other lumber 35, 905 

Timber — 

Sawed 54,137 

Hewn 72 

Logs and other timber 8, 083 

Manufactures of — 

Doors, sash, and blinds 4, 065 

Moldings, trimmings, etc 6, 131 

Hogsheads and barrels, empty " 79, 486 

Househ old furniture 108, 104 

Woodenware 13, 160 

Allother 107,845 

Wool, and manufactures of — 

Carpets 396 

Flannels and blankets 189 

Wearing apparel 1, 918 

All other manufactures of. 1, 187 

Zinc, and manufactures of— 

Pigs, bars, plates, etc 648 

All other manufactures of 1, 696 

Total 19,855,237 

The population of Mexico is two and one-half times that of Canada, and the value 
of the commerce with Mexico should be largely in excess of that with our northern 
neighbor. American manufacturers ar« gradually obtaining a dominant position in 



RECIPROCITY STATEMENTS. 251 

Canada, and have been able, by sending out their travelers and by working for 
trade, largely to supplant England in those markets. The same process applied to 
the southern countries will accomplish the same results. 

Mexico produces an infinite variety of articles that we need. It is therefore 
likely that our imports from that country may always exceed our exports to it. 
Powerful as is the position of the United States in Mexican commerce, the relation 
could be very much strengthened and the mutual profits become much greater were 
it possible to carry through a reciprocity treaty. Mexico at one time proposed such 
a treaty on lines that were sufficiently liberal. Her offer was not accepted by the 
United States with promptness and was finally withdrawn. If reciprocity treaties 
could be arranged with Canada on the north and Mexico on the south, the entire 
North American continent would become a market for American manufacturers. 



STATEMENT OF MR. JOHN CROSBY, REPRESENTING THE WASH- 
BURN-CROSBY COMPANY, OF MINNEAPOLIS, MINN. 

Mr. Crosby. We have come here simply to speak of tlie discrimina- 
tion which we meet with in the port of London, and on no other point. 

Mr. McLaukin. On what kind of goods? 

Mr. Crosby. On spring wheat flour. 

The American flour miller sells his flour for London on sixty days' 
draft c. i. f. The shipper or rather the consignee in London takes the 
c. i. f. figures, and from that he deducts whatever local charges he must 
pay. Therefore of course any local charges which appear there come 
directly out of the pocket of the Minneapolis, St. Louis, or Duluth 
miller. The port of London is the only port, as far as we can see, of 
the United Kingdom that is a free port under the act of Parliament. 
When the big docks were established by act of Parliament along in 
1828 or the early part of the century, it was expressly provided that 
any lighter or craft coming into the docks to take goods or ballast out 
of ships or deliver them there should be free from any charge whatso- 
ever. That is one case. 

Now another point. Where it is provided that the port of London is 
a free port in the merchants' shipping act, which was somewhat later 
than that which provided that any goods delivered on the quays of 
the London docks for the convenience of the shipowner in loading or 
unloading or assorting of goods, and any expenses incurred in that 
shall be borne by the shipowner and that all these goods shall be free 
with the consignee. Xow the discrimination which we meet directly is 
this : To these docks the ships come carrying our flour, and I will say 
at this point that probably of the spring wheat flour there comes over 
a million barrels to the port of London each year. London is the great 
dumping ground for the flour of both spring wheat and winter wheat of 
this country. It is a necessary opening for us. 

Mr. Tatvney. And the distributing point for Europe. 

Mr. Ckosby. Yes, sir; more particularly the inland points of the 
United Kingdom. We deliver flour there probably throughout the year 
at less than cost. We do it simply to keep our decks clear and to keep 
the product going. 

The ships with our product go to these docks. Our product — our 
flour — goes in these transatlantic liners and the only places on tin* 
Thames that they can land is at these docks, but the French ships come 
across the channel bearing light draft and can comeup the Thames and 
land at little warehouses farther up, or at the mill, or at the quay, with- 
out lightering, so that they escape these dock charges. Then again the 
English ships come from Liverpool where they grind up the wheat into 



252 RECIPROCITY STATEMENTS. 

flour, or Cardiff or Hartlepool, and they can escape these dock charges 
there. Now to show you what the charges are at these London docks. 
In every ocean bill of lading which is issued for flour there appears 
what is called the London clause, which particularly provides that 
there shall be a charge of Is. 6d. per ton for a dock and landing charge 
on these London docks, and there is where we meet the discrimin action, 
and that is the point where the English flours, that is the flours man- 
ufactured on the Thames by the millers there, or the flours manufac- 
tured at Liverpool or Cardiff and brought in these little ships, or 
French flours coming across the channel, which French flour, by the 
way, is a bounty-fed flour, they get the rebate on the wheat and grind 
it so it gets a double chance at us and we have to meet that. 

DISCRIMINATION IN FAVOR OF FRENCH MILLERS. 

The Chairman. If I understand you correctly the French exporter 
does not land at the same dock the American exporter does? 

Mr. Crosby. He does not. 

The Chairman. If he landed at the same dock would he be subject 
to the same charges? 

Mr. Crosby. He would. 

The Chairman. The point of the complaint you make is that the 
ocean going steamers which carry your product to the English market 
are so large that they can not land at places which smaller crafts from 
France — — 

Mr. Crosby. Or local English ports; that is exactly it. 

The Chairman. That is the point ? 

Mr. Crosby. Yes, sir. And we make the point there that not only 
is a discrimination made against American flour at that point but the 
charge of Is. 6d. in that London clause is directly contrary to the act of 
Parliament. 

The Chairman. It is in violation of the English law? 

Mr. Crosby. It is in violation of the English law. 

The Chairman. Why do you submit to it then? 

Mr. Crosby. Because we are given at Minneapolis an export through 
bill of lading. 

The Chairman. I get your point ; and in the bill of lading they exact 
of you to pay that charge, do they ? 

Mr. Crosby. They do in the result, but not at first. That bill oi 
lading simply says— clause 17 says: "This shipment is subject to what- 
ever conditions and specifications there may be in the ocean bill of lading 
of this date." We do not know anything about it. 

The Chairman. Where does that come in, the ocean bill of lading 
you speak of ? 

Mr. Crosby. Then the ocean bill of lading that is in vogue by the 
steamship companies is one which is adopted jointly by the steamship 
companies and the 

The Chairman. And the railroad companies? 

Mr. Crosby. And the railroad companies at New York. They get 
together. We were in New York Saturday and saw them back and 
forth, but it was the old question of going from pillar to post and from 
post back to pillar, and somewhere between them it is made up. 

The Chairman. Do I understand two bills are issued on your flour 
shipped from Minneapolis at the docks of London ? 

Mr. Crosby. No, sir; only one bill of lading, but clause 17 of our bill 
says that these shipments are subject to all the conditions and specifi- 
cations there may be in the ocean bill at this date. 



RECIPROCITY STATEMENTS. 253 

The Chairman. Then it takes not only what is in the bill of lading, 
but prohibits anything else? 
Mr. Crosby. It takes in this, that we sign a blank check. 

CONTRARY TO THE LAWS OF ENGLAND. 

Mr. Dolliyer. You say this charge is contrary to the laws of Eng- 
land? 

Mr. Crosby. Yes, sir. 

Mr. Dolliver. Then why do these ships pay it? 

The Chairman. The English law is a little different from ours. 
Now, you take a bill of lading issued in this country, where we have 
a variety of exemptions, and our courts have held that those are not 
binding upon the party because it is a one-sided contract and they can 
not enforce them. Now, in England, any contract you may make, how- 
ever unreasonable it may be, is binding and I understand they get over 
that on that decision. 

Mr. Crosby. That is what our consignees say over there. They say 
the English courts over there make the consignee stand simply in the 
shoes of the consignor, and if that consignor has chosen to contract 
himself out of his rights under the act of Parliament the consignee 
stands where he does and you do not get anything more. 

The Chairman. Who induced the steamship companies to issue such 
a bill of lading, the dock owners? 

Mr. Crosby. That is what we suspect. The dock owners in London, 
if this clause were not in the through bill of lading, could not collect 
it, and therefore it is suggested in our English correspondence that 
the dock company and steamship companies have joined in this. 

Mr. McLaurin. How do you expect Congress to remedy that? 

Mr. Crosby. Eemedy this discrimination? I have not thought of 
that. 

The Chairman. Could this be done — could Congress provide that 
the steamship company could not issue such a bill of lading? 

Mr. Crosby. That is the very thing we w^ould like. That is exactly 
what we would like ; or if they issued that bill of lading furnished to 
the inland shipper, so the man who sends forward a big amount of 
flour — and it is not flour alone— should see the contract he is signing. 

Mr. McLaurin. And not be forced to sign a contract of that sort? 

Mr. Crosby. We book ahead, and you may say there are two parties 
to it, and one need not go on against his will, but when you follow it up 
the local agents at Kansas City, Minneapolis, and Chicago say they do 
not know anything about the London clause. They say, " You are not 
subject to a London clause," but we say, "Our agents abroad say we 
are." They say tliat it is English talk and that it is not so; that they 
do not know. Then we go further and go to New York, and then they 
say, " You are, certainly, because you contracted this." Then we follow 
that up and ask who makes up the through bill of lading. "Well, a 
certain committee of the steamship company." And we follow that up, 
and they say, " On inland matters we consult with the railroads." And 
thus we go backward and forward, and you know what kind of a stone 
wall that is to run against. 

Mr. Tawney. Let me ask you : These docks in London are public 
docks established by act of Parliament? 

Mr. Crosby. They are chartered companies, I think they are called 
there. They are joint stock companies owned by private parties. We 
found that their stock is listed on the exchanges there, though the con- 



254 RECIPROCITY STATEMENTS. 

signees say over there that though they are owned as a private concern 
they are just as much subject to the provisions of the Grown as a public 
warehouse or railroad of this country. 

Mr. Tawney. In what way are they affected by acts of Parliament 
which require them to be free? 

Mr. Crosby. Directly this: They could not collect this landing 
charge of Is 6d per ton which they do collect to-day unless it is a 
specification put in the bill of lading, and if you will let me I will read 
over that. Here is a draft statement the London people drew up on 
that. They are fighting on that end. 

The Chairman. Just turn that over to the reporter and let him 
embody that. 

DRAFT STATEMENT ON LONDON CLAUSE. 

The London Flour Trade Association has drawn up this statement in order to bring 
to the notice of exporting flour millers of the United States the disabilities under 
which American flour labors in this port as compared with flour sent into London 
from other countries. 

When the docks were constructed, it was clearly stated in the act of Parliament 
that the dock waters shall be at all times as free as the River Thames, the clause in 
the act reading as follows : 

"136. All lighters and craft entering into the docks, basins, locks, or cuts to dis- 
charge or receive ballast or goods to or from on board of any ship or Teasel lying 
therein shall be exempt from the payment of any rates so long as the lighter or 
craft is bona fide engaged in so discharging or receiving the ballast or goods, and 
also all the ballast or goods received or discharged shall be exempt from any rate or 
charge whatever." 

Then, again, the merchant shipping act states on this subject: 

"If any goods are, for the purpose of convenience in assorting the same, landed at 
the wharf where the ship is discharged, and the owner of the goods at the time of 
such landing has made entry and is ready and offers to take delivery thereof and to 
convey the same to some wharf or warehouse, such goods shall be assorted at land- 
ing and shall, if demanded, be delivered to the owner thereof within twenty-four 
hours after assortment; and the expense of and consequent on such landing and as- 
sortment shall be borne by the shipowner." 

From the foregoing clauses it will be noticed that the consignees are protected 
from any charges being imposed upon them, first, by the dock charter, in that the 
flour may be worked from the ships in the docks and be exempt from any rate or 
charge whatever; and secondly, the merchant shipping act provides that should the 
flour be landed for the convenience of sorting that the expense of such landing and 
assortment shall be borne by the shipowner. 

By accepting the special clause entitled the "London clause" in the bill of lading, 
the American millers contract themselves out of these privileges, and when this 
point was fought in our law courts the judge stated that if the American shippers 
accepted such a clause in the bill of lading it was useless to come to the courts for 
protection. 

Up to the introduction of the London clause, whenever the shipowners landed 
their cargo on the quays they paid the Dock Company lOd. per ton for accommodation ; 
but by the concerted action between the Dock Company and the Atlantic Liners 
they devised a clause to be inserted in the bill of lading by which they contracted 
themselves out of these acts of Parliament and so placed permanent charges on the 
consignees. The original London clause read: 

" For the convenience of the consignees, we have arranged to land all our flour on 
the quays at the exceedingly low rate of Is. 2d. per ton." 

This rate has been increased to Is. 6d. per ton, and now they purpose to still fur- 
ther increase it to 2s. per ton. 

The whole operation of this London clause is a violation of the spirit of the act of 
Parliament safeguarding the consignee, and moreover it was framed in such a way 
as to lead exporting millers to suppose that it was for the convenience of the con- 
signees, whereas the consignees have always protested against its introduction into 
the bill of lading. 

By the foregoing it will be seen that London is a free port, and these objectionable 
charges could not be made were it not for the fact that American millers accept a 
bill of lading containing a clause contracting themselves out of the advantages 
secured to them by acts of Parliament. 

The danger of such action is that it places the trade practically at the mercy of 
the Dock Company here, who can, and doubtless will, if not effectively opposed, 



RECIPROCITY STATEMENTS. 255 

gradually increase the above-mentioned charges to the serious loss of trade to the 
exporting millers of the United States. 

This clause is not entered in bills of lading for the carriage of American wheat, so 
that American millers have, by the acceptance of the London clause, been taxing 
their own manufacture in a free-trade country. 

BRITISH VESSELS CARRY THE FREIGHT. 

The Chairman. Do you ship in American or English vessels? 

Mr. Crosby. Well, just as they may chance to be; but usually in 
English vessels. 

The Chairman. Have you brought this to the attention of the ocean 
carriers, about modifying their bills of lading so as not to subject you 
to that charge? 

Mr. Crosby. Yes; and we have not got much satisfaction. 

The Chairman. What do they say on that? Do they insist it is a 
proper charge, or say they can not help this; or what excuse do they 
give for issuing a bill of lading that is treated by an English court as a 
contract between an American shipper and the dock owner? 

Mr. Crosby. They have said this: It is for the convenience of the 
consignee, and that is why they do it; but the consignee says it is not 
any such thing, and they are protesting against it. And as this draft 
statement shows, they have gone so far as to take it up by their organi- 
zation and fight it. They are big, and move slowly. 

The Chairman. Have you any suggestion as to the specific kind of 
legislation which you think would meet this evil ? 

Mr. Crosby. I do not know exactly which channel any suggestion would 
come from, but as far as we see at Minneapolis we think a clause should 
be added to the Harter bill, or some amendment put there which pro- 
vides a bill of lading shall be furnished containing certain specifica- 
tions, and the condition of the goods and certain other things. Now, 
if that can be amended so as to say, also, this bill of lading shall con- 
tain the conditions of the contract, so we at Minneapolis, St. Louis, 
Duluth, or Chicago would know what we are signing to begin with. 
Then, as to the other point, as to what special action would be to stop 
this discrimination, I do not pretend to say in regard to that. We have 
felt the grievance and have come to see what we can do. 

The Chairman. If Congress would have the right to enact that no 
bill of lading, such as you now mention, should contain such clause as 
that, of course that would meet it. Have your attorneys looked into 
the case to know whether that is feasible ? 

Mr. Crosby. No, they have not. 

Mr. Tawney. I suppose there is another way we can get at it — by 
retaliation; they are discriminating against us? 

The Chairman. This is a matter of contract, and if the English courts 
held as the American courts do, as I understand it, there would be no 
trouble at all. You have a receipt issued by an express company, for 
example, which has a variety of conditions in it. You can not elimi- 
nate these and you take it as it is, but the courts have held that if there 
are any unreasonable conditions in there or anything unfair they are 
inoperative, but in the English courts whatever is in there they give 
force and effect to. I did not mean, Mr. Crosby, to interrupt your line 
of remarks. Just go on and state what you choose to say on this subject. 

Mr. Crosby. That has covered the main points I had in mind if I 
make clear the discrimination we meet. 

Mr. Tawney. It is not a discrimination, however, due to any law of 
England j it is a discrimination that results 



256 RECIPROCITY STATEMENTS. 

Mr. Dolliyer. It seems to be due to the size of the ship more than 
anything else. 

Mr. Tawney (continuing). It seems to be due to the fact that this 
product is shipped over in vessels which can not reach the river at 
places where the vessels from other countries reach and deliver their 
cargoes. . If they were large vessels landing at the same docks your 
vessels do they would be subject to the same charges, would they not? 

Mr. Crosby. They would, undoubtedly. 

Mr. Tawney. So it is not a discrimination resulting from any law of 
Great Britain, but it is a discrimination which results from conditions 
under which your products are shipped? 

FURTHER DISCRIMINATION IN THE WHEAT TRADE. 

Mr. Crosby. There is another discrimination in which the size of the 
vessel is the same, and that is wheat is by the bill of lading, the second 
part of that London clause, wheat is particularly mentioned as being 
free of all charges whatever. 

Mr. Tawney. That is a discrimination in favor of the home manu- 
facturer over other manufacturers ? 

Mr. Crosby. Yes; therefore the English miller gets his wheat up 
the Thames at the mills and puts it on the markets without having to 
pay these London charges whatever, and we, on the contrary, have to 
furnish him the free wheat and in this free trade port we have to pay 
duty; that is what it amounts to. 

Mr. Tawney. About what do these charges amount to per barrel of 
flour? 

Mr. Crosby. It is Is. 6d. per ton, and what has really started the 
whole agitation, both on this side and that, is that the dock companies 
and shipping companies have proposed to increase these charges from 
Is. 6d. to 2s., perhaps, and decreasing the time in which the flour may 
be taken from the quay after landing without penalty attaching, and 
the time they suggest is so short — twenty -four hours — that penalty 
would always attach, and the charges on that would perhaps be 6s. or 
7s. per ton. We should not feel it so much were it not for the fact that 
London is the great overflow market for all our flour. We have to 
ship there. We are all shipping there throughout the year, and it is a 
very conservative estimate to say, at not more than cost, and often we 
are shipping and selling there at a loss of 10 or 15 cents a barrel. Mr. 
Bovey, here, attends to the export portion of our business, and he may 
may have something to add to what I have said. 



STATEMENT OF ME. CHARLES C. BOVEY, OF MINNEAPOLIS. 

Mr. Bovey said : 

Mr. Chairman and Gentlemen: When Mr. Pillsbury was here and 
spoke to you he mentioned the ports where the American millers are 
shut out — Germany, France, Sweden — and now to-day we are talking 
on only one port; but while only one, it is the largest. Mr. Crosby has 
already said London is the great dumping ground of American flour. 
Our mills can grind more flour than can be consumed at home; we 
can make bread cheaper the more flour we can make, and the more sur- 
plus we can put abroad of course the more profitable it becomes to the 
American millers. So that a discrimination against the American 



RECIPROCITY STATEMENTS. 257 



miller in a port like London is a very dire disaster, especially this year, 
when the French flours are finding such ready sale over there. We 
look this year, with the shortage in the winter wheat States, to be 
blessed with a market which will take care of all our overflow, and sud- 
denly we are confronted with the French, who are getting into London, 
as Mr. Crosby said, by the fact they are bounty -fed flours, and then 
because tbey are getting into London and not suffering these dock 
charges which American flour suffers there. 

The discrimination against flour and letting wheat in free is more 
than appears on the surface, because the London miller gets his wheat 
free and gets also the ofl'al, or bran, or shorts, or whatever it may be, 
from that wheat, and that is where he makes a great part of his money. 
There is a great deal of stock, of course, raised all through the United 
Kingdom, and we can not compete with these offals, bran, and shorts 
on account of the enormous freight rates. We can send our flours of 
all grades abroad and into London because they are packed tightly, of 
heavy weight and small bulk, and we get a very low ocean freight, com- 
paratively; but when it comes to shipping bran and feed we are shut 
out entirely on account of its bulk, and here is that bran and feed now 
coining in the shape of wheat to enable the miller in London and other 
parts of the United Kingdom to sell his product cheaply because he is 
enjoying a good price on his offal, so I think in looking at it from that 
point the discrimination against our flour is a very grievous one. I 
think the other points have all been covered in regard to the impor- 
tance of the port of London. 

Mr. Dolliver. Is there any practical remedy for that? It looks to 
me the thing arises, according to Mr. Crosby's statement, from the fact 
that the ocean carrier of American flour is compelled to land at these 
licensed docks. 

Mr. Bovey. Yes; but the English Parliament says that the vessels 
shall discharge free. 

Mr. Dolliver. " Shall" discharge, or "may" discharge? 

Mr. Bovey. ISTo ; " shall" discharge. And, you see, if the vessel could 
discharge with these lighters free, as Parliament says it must, then we 
would get into London in the same way these French crafts do. 

Mr. Dolliver. I do not understand how they levy this assess- 
ment 

Mr. TAWNEY. By contract. 

Mr. Dolliver (continuing). If Parliament says these ships must 
discharge free. 

Mr. Bovey. We have contracted ourselves to do it. 

Mr. Tawney. They have waived the benefit of that act of Parlia- 
ment. 

Mr. Dolliver. Then make a contract which is more satisfactory 
than that which you have. 

Mr. Crosby. We asked for bread and they gave us a stone. 

Mr. Dolliver. Then take another company; there are a good many 
lines there. It seems to me that if this is an unjust charge you should 
be able to get a steamer to carry that flour. 

Mr. Bovey. That is right, but you know they are joined together. 
They are all bound by rules together, in order to hold their rates. 

Mr. Dolliver. I do not know that Congress has ever undertaken to 
regulate the language of these ocean contracts and bills of lading. 
H< Kep. 2263 17 



258 RECIPROCITY STATEMENTS. 

THE HARTER LAW. 

Mr. Bovey. The Harter law lias taken it up vigorously and protected 
the miller against the steamship company, and it seems to me it might 
be possible 

Mr. Tawney. Is the Harter bill a law or a bill pending ? 

Mr. Bovey. It is a law. It passed February, 1893, I think. 

Mr. Crosby. And provides that certain requirements of the bill of 
lading the steamship companies and carriers had been putting in shall 
be null and void. 

Mr. Tawney. Have you ever applied through the State Department 
here to the consul at London for the purpose of having the matter 
adjusted? 

Mr. Bovey. That thought came to us, that perhaps our consul there 
would be able to move against the steamship companies to that end 
and assist us, but we have not done it. 

Mr. Tawney. I was thinking as you were talking that it might be a 
good idea for you to make application through the State Department 
to the consul there and have the State Department take it up, and if 
there is an unjust discrimination I think it would be the duty of the 
State Department to see if the discriminations could not be corrected, 
and it might be accomplished in that way; or if there is any practical 
suggestion in the way of amendment to the Harter bill which would 
accomplish the result which you desire, it might be entirely feasible 
to have that amendment prepared and introduced, and possibly it might 
get through. 

Mr. Bovey. The way the thing works out, it is really a tax. 

Mr. Tawney. Let me ask you before you take your seat as to the 
effect of the reciprocity clause of the act of 1890 on the spring wheat 
flour trade abroad — whether you were able to increase your foreign 
trade during the continuance of that provision, or whether you are 
injured in any manner by its repeal ? 

Mr. Bovey. I really do not know the facts of the 1890 bill. 

Mr. Tawney. The reciprocity clause, you know, enabled the winter 
wheat millers of the country to ship to foreign ports under more favor- 
able conditions than they had ever shipped before by getting greatly 
reduced rates, and I did not know whether you spring wheat millers 
were similarly situated or not ? 

Mr. Fletcher. Under reciprocity the shipment of spring wheat 
fiour affected them the same as winter wheat, and was greatly increased 
while reciprocity existed, and when that was repealed then it was very 
much diminished. 

Mr. Bovey. I can say anything which helps the winter wheat miller 
also helps the spring wheat miller, and especially in regard to the exports 
abroad, because what we want to do is to have all the openings possi- 
ble for our surplus, and if our winter wheat millers can put their sur- 
plus abroad the pressure is relieved here, and what helps one helps the 
other. We are all in the same boat so far as looking to an open market 
abroad. 

Mr. Tawney. Were you connected with the Crosby- Washburn 
establishment in 1892? 

Mr. Bovey. Yes; that was just the beginning of my career there. 

CONSUMPTION OF WINTER WHEAT FLOUR. 

Mr. Tawney. Do you or Mr. Crosby know how the consumption of 
winter wheat flour this past year compared with the same flour in 1892 
in this country for the home market? 



RECIPROCITY STATEMENTS. 259 

Mr. Boyey. The consumption lias of course been very much hurt 
here this year. The winter wheat millers have suffered very much here 
from the small crop, and the spring* wheat millers have pushed into 
new territory this year, so in answering that I should say the spring 
wheat has increased its consumption, and the winter wheat lost this 
year, and it is greatly 03^ reason of the shortage of our crop. Whether 
these conditions will remain under more favorable conditions for the 
winter wheat millers I do not know. I think it would react a little in 
its favor. r 

31 r. Tawney. Are there an y exhibits you wish to file in connection 
with your remarks l 

Mr. Crosby. There is the draft statement on the London clause and 
a petition signed by Mr. Pillsbury, Mr. Davis, and others ; also a letter 
from the National Millers' Association. 

Chicago, April 10, 1896. 
John Crosby, 

Arlington Hotel, Washington, D. C. 

Dear Sir: At tlie request of Mr. C. A. Pillsbury, I beg to advise you that the fol- 
lowing resolution was unanimously adopted at a meeting of the board of managers 
of the Millers' National Association held at Chicago this day: 

"Resolved, That the Millers' National Association of the United States protests 
against the attempt that is being made by transatlantic steamship lines and dock 
companies of London, through the uniform export bill of lading now tendered by 
carriers, to impose a landing charge upon merchandise coming from United States 
ports, notwithstanding that the laws of the British Parliament prohibit such charge 
and make London a free port, and we earnestly urge that national legislation be had, 
if necessary, to prevent the enforcement of such discrimination against the products 
of this country.'' 

Yours, respectfully, Frank Barry, Secretary. 



LONDON DOCK CHARGES AND OCEAN BILLS OF LADING. 
I. 

American flour millers sell their flour in London, Liverpool, Glasgow, and all 
other ports of the United Kingdom, c. i. f., and draw a sixty-day bill of exchange 
upon shipping the flour. Their consignees, upon taking up the bills of exchange, 
obtain the bills of lading attached thereto and obtain delivery of the flour. The 
bill of exchange includes cost, insurance, and freight, but does not include the land- 
ing and warehouse charges. These latter the consignee must pay before receiving 
their flour, and, of course, although they are paid by the consignees, these charges 
in the last result come out of the price obtained by American flour millers. 

London is the only port of the United Kingdom which has free docks, and at 
which the consignees are entitled to obtain their flour without paying any charges 
to steamship or dock company for the delivery of their goods. And in the ocean 
bill of lading, London is the only port for which there is expressly stipulated and 
ascertained a landing charge. 

This landing or dock charge at present is Is. 6d. per ton weight. It is now pro- 
posed by the dock and steamship companies to increase this charge to 2s. per ton 
weight, and to decrease the time within which the consignee may receive his goods 
from the present time of seventy-two hours to twenty-four hours. 

The inland Hour millers of the United States send their flour forward on an export 
through bill of lading, which does not contain the conditions and clauses of the ocean 
bill of lading, but is, nevertheless, by express terms, made subject to all the con- 
ditions and provisions of the ocean bills of lading in vogue at the date thereof. 

The above increase in charge and decrease in time have driven us to an investiga- 
tion of this landing charge and the export bill of lading, with the results that we 
find that not only have we been discriminated against and given an unintelligible 
bill of lading but also that any landing or dock charge at these docks is illegal 
under the acts of Parliament. 

II. 

This increase of the landing charge has been proposed by the London and India 
Docks Joint Committee. This joint committee is the managing board of the London 
and India Docks. The London and India Docks is a consolidation effected in 1888 of 



260 KECIPROCITY STATEMENTS. 

the St. Catherine, the Victoria, the Albert, West India, and East India docks, which 
comprise all of the docks at which it is customary or usual to land American flour. 

These dock companies were created by private acts of Parliament, and while they 
are, in their ownership, private concerns, they are, from the nature of their busi- 
ness, public servants, and they are subject to the control of the Crown in the matters 
of service and charges as completely as our railroads and warehouses in the United 
States are subject to the control of Federal and State legislation. 

The London docks may make charges for the use of their docks by ships and ship- 
owners, but it is provided explicitly in the act of 1828 that owners of goods may 
bring their own lighters or craft free of all charge into the docks and load their 
goods "ex ship" free of all charge. (See the first quotation of law in the London 
draft attached to this petition.) 

This clause covers the case of a consignee who provides his own lighters and takes 
his freight directly "ex ship." But if these shipowners should, for the purpose of 
convenience in assorting the same, discharge their freight on to the quays of" the Lon- 
don docks instead of delivering it "ex ship" to the consignee, there is still an act of 
Parliament protecting the consignee, namely, " The merchants' shipping act, amend- 
ment act 1862," chapter 63, article 67, section 6. (See the second statement of law 
in the London draft attached hereto.) 

Thus it appears that American flour is amply protected from charges at the Lon- 
don docks, either in case the consignee takes it in his own lighters, or in case the ship- 
owner lands it on the quays for the purpose of assorting it. These two cases are 
general cases and cover all the modes of landing through. > 

III. 

While this landing charge of Is. 6d. per ton obtained by the London clause is very 
burdensome, it could be better borne were it not for the fact that, by the same London 
clause, wheat is explicitly freed from any charge, and, therefore, in the free port of 
London the raw material enters free and the manufactured article is taxed. At this 
point it should be noted that in the proposed changes which make the tax on the 
manufactured articles till more burdensome the raw material is still admitted free, 
and no change is proposed in connection with it. 

There is another form of discrimination which American flour must meet under 
this London clause. All American flours must be landed, by reason of the deep 
draft of the transatlantic ships, at the large London docks, and therefore incur 
this tax of Is. 6d. On the other hand, French and English flours, for instance, from 
Cardiff, Liverpool, or Hartlepool, can be brought up the Thames in ships of lighter 
draft, need not be landed at the regular London docks, and, therefore, escape all 
tax. The French flour is a bounty-fed flour besides. 

Therefore the American flour millers must meet the competition of flours made 
from their own wheat which is discriminated against them in a free-trade country. 

IV. 

We do not to-day ask that the proposed changes in the London clause be pre- 
sented — we ask that the entire London clause be stricken out and that landing 
charges in London be left to take their natural course. This will mean in the future 
the settlement of all such questions by Englishmen in their own English port and 
under their self-enacted acts of legislation. We must ask this because of the dan- 
gers that may arise in the future from other possible changes in the London clause 
or other added clauses. Take the proposed changes, for example. 

At present, the consignee has seventy-two hours in which to take his goods from 
the quay without paying more than Is. 6d. The proposed change in time is to limit 
this period to twenty-four hours. Our consignees advise us that it will often be 
physically impossible to remove their flour in twenty-four hours. If it is not so 
removed, then other charges immediately accrue to the extent of 2s. 6d. up to a 
possible 4s. per ton. Such a tax as this would be practically prohibitive. 

This reduction of time is of more vital importance than the increase in the amount 
of charge. Yet an increase of 6d. per ton, trifling as it may seem, will put still fur- 
ther difficulties in the way of selling an article which is already discriminated 
against and which is, for the most part, laid down in London at a price not to 
exceed cost. 

V. 

As -was said, the inland shipper of flour (who, by the way, ships by far the greater 
part of the flour exported from this country) sends his flour forward on what is 
called an export bill of lading. This bill contains the following clause: 

"17. That the property covered by this bill of lading is subject to all conditions 
expressed in the regular forms of bills of lading in use by the steamship company at 



RECIPROCITY STATEMENTS. 261 

time of shipment and to all local rules and regulations at port of destination not 
expressly provided for by the clauses herein." 

The inland shipper never sees the regular forms of hills of lading in use by the 
steamship company, nor do the inland representatives of the railroad or transit com- 
panies have any knowledge of these conditions. But, if they did, what protection 
would the inland shipper have against such changes as may he made from time to 
time in the hills of lading in use by the steamship companies? 

It is a right of the first moment that a contracting party should be informed of all 
the terms and conditions which are contained in the contract he is undertaking. 

There was a time when the shipowners paid the dock companies lOd. per ton for 
each ton they landed of their cargoes on the quays. This was a part of the ship/s 
expense while in dock. It was not a proper charge for the consignee to assume, and, 
in fact, could not be enforced, because of the acts of Parliament we have considered. 
If the charge in question were not included in the bill of lading, then the consignee 
could not be compelled to assume it; but by the consignor accepting a bill of lading 
which included such a specifically stated charge as the London clause contained the 
consignee, and with him the consignor, was contracted out of his rights under the 
acts of Parliament. The consignee could gain no more rights under the bill of lading 
than were possessed by the consignor; he stood in the shoes of the consignor. 

The London clause was in the beginning short and simple and to the following 
effect : 

"For the convenience of the consignees, we have arranged to land all flour on the 
quays at the exceedingly low rate of Is. 2d. per ton." 

This clause has grown in complexity and the charge has increased until to-day it 
reads as follows: 

"London clause (A). — The shipowners shall, at their option, be entitled to land the 
goods within mentioned on the quays, or discharge them into craft hired by them, 
immediately on arrival, and at consignee's risk and expense, the shipowner being 
entitled to collect the same charges on goods entered for landing at the docks as on 
goods entered for delivery to lighters. Consignees desirous of conveying their goods 
elsewhere shall, on making application to the ship's agents, or to the Dock Company, 
within seventy-two hours after the steamer shall have been reported, be entitled to 
delivery into consignee's lighters at the following rates, to be paid with the freight to 
the ship's agents against release, or to the Dock Company if so directed by the ship's 
agents, viz: Following wooden goods in packages — clothes pegs, spade handles, 
blind rollers, hubs, spokes, wheels, and oars, Is. per ton measurement; hops, 2s. 6d. ; 
hay, 2s. per ton weight; lumber, Is. 6d. per ton measurement, or 2s. per ton weight, 
as per margin ; all other goods, Is. 6d. per ton weight or measurement, at ship's option ; 
minimum charge, 1 ton. Cheese may also be removed by consignee's vans within a 
week after ship shall have reported, subject to a like payment of 3s. per ton weight. 
Such sums include loading up and wharfage. Any single article weighing over 1 ton 
to be subject to extra expense for handling, if incurred. All measurement freight to 
be on the intake caliper measurement at New York, as stated in margin. Freights 
by weight (grain excepted) to be paid upon the weight stated in margin, or at ship's 
option upon landing weight. If weight has been understated, the cost of weighing 
to be a charge upon the goods. All shipments of lumber and logs which are sent 
forward on a weight rate will pay freight on the railroad weights furnished at New 
York. No alteration will be permitted in any railroad weights or freights included 
in this bill of lading except at ship's option. 

"(B) Grain for overside delivery is to be applied for within twenty-four hours of 
ship's docking, or thereafter immediately it becomes clear. In the absence of suffi- 
cient consignee's craft, with responsible persons in charge to receive as fast as ship 
can discharge overside into lighters during dock working hours, the master or agent 
may land or discharge into lighters at the risk and expense of the consignee. The 
shipowner may land or discharge continuously day and / or night; any grain 
landed or discharged for ship's convenience during usual dock hours, consignee's 
craft being duly in attendance, and any grain may be landed or discharged before or 
after usual dock hours (whether craft are then in attendance or not), is to be given up 
free to consignee's craft applying for same within seventy-two hours from its landing 
or discharge, otherwise it will be subject to the usual dock charges. An extra freight 
of 7d. per ton shall be paid to the shipowner on each consignment of grain whether 
any portion be landed or not. The grain to be weighed at time of discharge, either 
on deck or quay at ship's option. Working-out charges (including weighing) for 
grain in bulk and / or ship's bags to be paid by the consignee with the freight to the 
ship's agents, or to the Dock Company, if so directed by the ship's agent, in exchange 
for release at the rate of Is. 9d. per ton on wheat, maize, and heavy grain; Is. lid. 
per ton on barley, and 2s. per ton on oats. Neither party shall be liable for any 
interference with the performance of the contract herein contained which is caused 
by strikes or lockout of seamen, lightermen, or shore laborers, whether partial or 
otherwise, nor for any consequences of such strikes or lockout, but in such case the 



262 RECIPROCITY STATEMENTS. 

shipowner shall be entitled to land or put into craft at the risk and expense of con- 
signee. In case the grain shipped under this bill of lading forms part of a larger 
bulk, each bill of lading to bear its proportion of shortage and damage, if any. 

"These London clauses, A and B, are to form part of this bill of lading, and any 
words at variance with them are hereby canceled. 

"The exceptions and conditions enumerate*! in this bill of lading shall apply not 
only during the loading and voyage, but during the discharge and until the goods 
and grain are actually delivered to the consignee, and the persons handling the 
goods and grain in the ship, on the quays, or into the lighters, or till delivery to the 
consignees, or to the Dock Company, shall be deemed the servants of the shipowner." 

VI. 

Congress has already taken action on bills of lading in the Harter bill of the 13th 
of February, 1893, and we feel confident that if these objections had been known to 
the trade and had been brought forward at that date clauses covering them would 
have been inserted in that act. Congress very properly takes steps to protect the 
importation of American food products into Germany and upon the Continent gen- 
erally, and to see that they are not discriminated against unfairly and without cause. 
We feel that on investigation Congress will perceive this London clause to be as 
unjust and illegal a discrimination against American flour shippers as are the pre- 
tended zeal and care of Germany against American meats, and we feel that the merits 
of a bill of lading containing on its face all of the clauses aucl conditions of the con- 
tract of shipment must be patent to all. 

American flour shippers are so scattered that it is with great difficulty that they 
could, unaided and alone, force the transatlantic steamship companies to omit from 
the ocean bills of lading the objectionable London clause. Therefore the aid of Con- 
gress is invoked to these ends : 

1. That the London clause in ocean bills of lading be declared void and of no effect. 

2. That the export bill of lading furnished to inland shippers shall contain on its 
face all the terms and conditions of the contract. 

Chas. A. Pillsbury, 
Manager Pillsbury- Washburn Flour Mills, 

J. G. Davis & Co., Rochester, N. Y. 

Freeman Milling Co., Superior, Wis., 
By A. Ringler. 

R. D. Hubbard, ManTcato. 

Bernhard Stern. 

North Dakota Milling Co., 
By Geo. Bull, Treasurer. 

Central Milling Co., 
By A. R. James, Treasurer. 

Washburn-Crosby Co., 
By James S. Bell, President. 



APPENDIX I. 



ADDRESSES BEFORE THE COMMITTEE ON WAYS AND MEANS BY 
REPRESENTATIVES OF VARIOUS INDUSTRIES. 



263 



VARIOUS INDUSTRIES 



STATEMENT OF JOHN W. GATES, OF CHICAGO, PRESIDENT OF TH# 
ILLINOIS STEEL COMPANY. 

The Chairman. I wish you would first state to the committee the 
name of the company you represent, the amount of manufacture, the 
capital invested, the number of employees, etc. 

Mr. Gates. I represent the Illinois Steel Company, with headquarters 
at Chicago. We have a capital invested of between $39,000,000 and 
$40,000,000. We operate seventeen blast furnaces, eight open-hearth 
furnaces, seven iron and steel mills, three rail mills, two blown billet 
slab mills, one plate mill, one sheet mill, one wire-rod mill, two iron 
mines, about twelve coke ovens, and we mine our own eoal. 

The Chairman. What is the number of your employees in all? 

Mr. Gates. The number of our employees varies from, I should say, 
8,000, the lowest, to 17,000, the highest. 

Mr. McLaurin. Are all these mills in the same State? 

Mr. Gates. We have one mill at South Milwaukee, Wis.; one at 
Hammond, Ind., and the remainder in Illinois. 

The Chairman. What is the value of your product? 

Mr. Gates. From $20,000,000 to $30,000,000. 

The Chairman. Where is your market for this; is it entirely at 
home, or partially at home and partially abroad ? 

Mr. Gates. Up to 1890 the market for the product of the Illinois 
Steel Company was exclusively in America. Under the reciprocity 
treaties enacted at that time we had some foreign business. We had 
very little in 1890; a little more in 1891; and gradually we did more 
every year. As far as I know, there is not to-day a nation that is dis- 
criminating against the United States in favor of other countries in our 
line of business. In other words, I do not know that we run against 
what is known as the favored-nation clause in the exportation of any 
goods we manufacture. We have in the past. In Cuba a year ago 
the Spanish authorities added three lines of duties. The first was 
exportation from Spain, which was a nominal duty. The second was 
called the favored-nation schedule, and that included Germany and 
England; and the third was the high tariff, and the United States 
came under that tariff. I understand that has been modified so that 
we are practically on the same basis to-day in exporting goods to Cuba 
that we were prior to the repeal of the reciprocity act. The same, I 
think, is true in Brazil. I am not quite positive about that, but during 
the time of the reciprocity we had what was called the favored-nation 
clause in our favor. We had a lower duty to Brazil, I think, than any 
other nation. We got into Brazil in good shape, and we did a good 
deal of business there. That was abrogated, I think, in 1894. 

The Chairman. But prior to that repeal you had facilities superior 
to your foreign competitors ? 

Mr. Gates. Yes, sir; and the consequence was that our foreign trade 
grew very fast. 

265 



266 RECIPROCITY STATEMENTS. 

The Chairman. The repeal of the reciprocity clause placed you on 
the same basis as your foreign competitors? 

Mr. Gates. Exactly. 

Mr. McLaitrin. Have you lost auy trade by reason of that? 

Mr. Gates. Yes, sir; we have, and for this reason: That while we 
should have lower freights from New York, Montreal, Philadelphia, 
Baltimore, or Boston to South American ports, yet that is not true. 
Freights from Antwerp, Bremen, London, or Liverpool are lower to' all 
those prominent Brazilian ports than from American ports. The reason 
of that is that the English and Germans particularly got into that 
country at a very early day, and many of the Brazilian houses are 
largely owned by British and German capital, and they have regular 
lines of steamers. As a consequence, our freight rate is 30 to 40 per 
cent higher, which makes it that much greater hardship which we have 
to overcome in selling goods. The Illinois Steel Company, of which I am 
the president, has not done a large business in Brazil, but our wire 
company has done a large business in all the South American ports. 
Our wire company was able to reach the markets under reciprocity. I 
do not think we made any money, however. 

The Chairman. You mean that since the repeal of the reciprocity 
you did business at less profit? 

Mr. Gates. We have not made money, but we have got the business 
and held on to it by importing foreign steel. We ship it out, and get 
the drawback. I do not suppose that the average profit has been 1 
per cent, but still we have held on to it, thinking that there would 
be a change. I wrote a letter to the manager of the New York office, 
and I will put this letter in my testimony. He is thoroughly posted on 
the question. 

The chairman read the letter, as follows : 

Offices Consolidated Steel and Wire Company, 

New York, March 18, 1896. 

Dear Sir: Referring to the question of advantages to American manufacturers 
under the reciprocity treaties, we would say that from the time these treaties were 
put in effect with the Latin-American countries, and until their termination, our 
trade in barb wire with those countries increased rapidly and uniformly, and in 
addition to the trade in barb wire we were able, for the first time in the history of 
our company — which covers more than eighteen years — to introduce to a certain 
extent plain wire and wire nails, and everything indicated a continued expansion of 
the volume of our business had the conditions remained the same. As soon, how- 
ever, as these treaties were abrogated by the adoption of the United States of 
another tariff law, our trade with the countries which it effected became practically 
nothing. 

As an illustration of the workings of these treaties, or rather the hardships 
entailed by their abrogation, we would cite the instance of Cuba. This country 
provides three different' rates of duty on each and every article imported into it. 
These various rates are designated as the first, second, and third columns — the first 
column being the highest and the third the lowest — and on our goods at least there is 
a wide difference between each of these columns. The third column is an especially 
low rate, and is only granted to certain favored countries, under certain conditions. 
These conditions are met by our reciprocity treaty with them; therefore American 
manufacturers had the benefit of the very lowest duty given to anyone on goods 
going into that country. No sooner was the reciprocity arrangement terminated 
than the Spanish authorities for the island advanced the United States rate of duty 
from the third column to the first — that is, to the highest possible limit — and as 
we had no " favored-nation " treaty with Spain we of course had no redress. 

Our principal European competitors — that is, the manufacturers of England, Ger- 
many, and Belgium — were enabled to ship their goods into Cuba under the second 
column of duties, and this, together with the fact that there were rapid regular 
lines of steamers from Europe to the West Indies, and together with the low rates of 
freight which are always quoted from European ports, made any exportations from 
the United States to Cuba, at least in our line of goods, absolutely out of the question. 

A similar condition of affairs is true, in a greater or less degree, with all other 



RECIPROCITY STATEMENTS. 267 

countries with whom the United States had similar arrangements. In general, we 
may say that the reciprocity treaties were absolutely aud unqualifiedly of great 
advantage to American manufacturers, aud we should be very glad, iiideed, to see 
either the same or similar ones reinstated, because under no other known set of con- 
ditions can American manufacturers pay American prices for labor and material and 
successfully meet the competition of foreign manufacturers. 

Perhaps the most positive indication of the hardship entailed on the manufacturers 
by the abrogation of these treaties, and as an illustration of the retaliation insti- 
tuted by the various countries with whom we formerly had the treaties, we would 
say that we have been requested, providing we would make the necessary price, to 
ship our goods via European ports, for reshipment to Central and South American 
countries, with the proviso that nothing in the way of marks on the goods or pack* 
ages should indicate the actual origin of the goods. In other words, if the goods 
were presumably not of American manufacture, they could be entered at a better 
rate of duty than otherwise. 

Yours, truly, F. E. Patterson, Manager. 

J. W. Gates, 

President Illinois Steel Company, Chicago, HI. 

The Chairman. That is an important letter. 

Mr. McLatjrin. Who is the writer of that letter? 

Mr. Gates. Mr. Patterson, the manager of the Consolidated Steel 
and Wire Company, of which I am a director. The average number of 
men employed by the Illinois Steel Company in 1895, 1 find by reference, 
is 10,282; the wages paid, $6,553,795; freight paid, $6,337,440.31. 

The American manufacturers not only want reciprocity and protec- 
tion, but subsidized lines of steamers. The shipping facilities from 
American ports are one of the greatest handicaps to American manu- 
facturers. 

We have an office in London and one in Liverpool, and we are con- 
tinually checking up freight rates. We can get a freight rate to-day 
of 8 shillings and 3 pence to San Francisco, which would be about $2 ; 
whereas to ship from New York to San Francisco is about $6. We can 
ship from Liverpool to San Francisco for $2, and can not do it for less 
than $6 from New York. 

Mr. McLatjrin. What is the reason for that? 

Mr. Gates. The cause for that is that the Englishmen have got to 
buy American products. They must either send their boats back in 
ballast, or get a load at any rate they can. They are always willing to 
name a rate which is one-half the American rate. We are prohibited 
from shipping from one American port to another in our coastwise trade 
under the law, except in American bottoms. We can not load a boat 
in New York and send it to San Francisco, unless it is an American 
boat. If we could do that, it would help American shipbuilding as 
much as anything else. The rate from New York to Galveston is $3.80, 
and the rate to Liverpool is $1.75. If we ship to Galveston, we can 
not pick up a tramp steamer, but we must get an American bottom in 
which to ship; otherwise they would seize our goods upon arrival. In 
times past this has caused litigation. 

The Chairman. The line of argument which you wish to develop is 
this : By a system of subsidizing steamships, the same as is done in 
England and Germany, and has been for one hundred years, we could, 
you think, establish a merchant marine, and thus reduce the cost of 
transportation to the minimum? 

Mr. Gates. Yes, sir; that would help the American manufacturer 
fully as much as the tariff. 

The Chairman. In other words, the question of transportation is 
one of the items to be considered in the sale of the product in foreign 
countries ? 



268 RECIPROCITY STATEMENTS. 

Mr. Gates. Yes, sir; and I will give you an illustration of that : The 
San Joaquin Valley Railway Company wanted to buy 18,000 tons of 
rails. We figured on the freight rate from Chicago to San Francisco, 
and the best rate we could get was $13.44 per gross ton. The English 
shipped them for 8s, paid $7.84 duty, and saved $3.50 over our price; 
so that transportation is an important item. When we strike the 
Gulf ports or the Pacific ports the American manufacturer is handi- 
capped against the English on account of the rates of transportation. 

The Chairman. One of the reasons, as you well stated, why English 
can transport goods, iron and steel, cheaper, is that they take it instead 
of ballast. They intend to make profits on the return trip ? 

Mr. Gates. Yes, sir; and then they are subsidized by their Govern- 
ments, especially in Germany. From the Krupp Works to the sea- 
board the freight rate would be 12s, or about $3 per ton, if the 
freight was for export going past Bremen or Antwerp, while the rate 
on American freight would be about 4 marks for the same distance. 
In other words, the German Government protects its manufacturers by 
making low rates on everything going out of the country, while in the 
United States it is higher on the home consumption. 

In the questions sent out by this committee we were asked the out- 
put of the establishment, compared with that of years ago. In 1890 
our output was about 450,000 official tons ; and that 450,000 official tons 
of material brought $25,000,000. In 1895 our official output was 
875,000 tons, and brought less than $22,000,000. 

The Chairman. What has been the condition of trade in your line 
during the last two years f 

Mr. Gates. In the last two years the Illinois Steel Company employed 
$35,000,000 of capital, and made in profits in 1893, 1894, and 1895, about 
$300,000 in three years. Our reports are published, and it is a matter 
of public information. 

As to question 14 — What advantage did your foreign competitor have 
in cost of manufacture and transportation charges to foreign markets'? — 
I would say that American ore would be far cheapest, because we have 
better material, but the cost of labor in mining is so much higher in 
America that the cost of delivery at our works is somewhat higher than 
it is to the works on the other side. The wages paid to workingmen is 
very much higher here than it is in England and Germany, but we have 
better facilities for turning out large quantities than they have, and, as 
a consequence, while we can not compete flat, we can come close to it, 
and are willing to sell our surplus at a loss in order to keep the works 
running. 

The Chairman. In your iron and steel mills at Chicago the domestic 
trade is the one that interests you most, but in the wire-rod mill you 
are interested in the South American trade? 

Mr. Gates. Yes, sir. 

The Chairman. You are interested in the reestablishment of the 
principle of reciprocity? 

Mr. Gates. Very much. 



STATEMENT OF MR. EUGENE LEVERING, PRESIDENT OF THE 
BALTIMORE BOARD OF TRADE. 

The Chairman. Please state your name, residence, and business. 

Mr. Levering. I am president of the Board of Trade of Baltimore, 
and I am interested in the trade with Brazil. We have been engaged 
in business in Bio and Santos for a number of years, and by reason of 



RECIPROCITY STATEMENTS. 269 

the abrogation of the reciprocity treaty our trade is suffering severely. 
There are other reasons which have complicated the situation. Under 
recent enactments in Brazil, they have imposed an additional duty on 
exports of our flour, and they have taken off the duty on wheat. Balti- 
more claims to be the only city in the United States which has now got 
an American fleet of large tonnage trading in that country; and that 
shipping business is jeopardized, because the flour trade is our main 
export, and furnishes freight for these vessels, and it is now hampered. 
We do not know what to do with our vessels. We recently gave an r 
order for a new vessel to be built in Maine. I want to say that during 
the continuance of the reciprocity treaty the flour trade, as well as a 
great many other branches of which Mr. Stewart will speak (because he 
is thoroughly familiar with the matter), has advanced. This trade with 
Brazil dates back eighty or ninety years. Our representative in Eio 
produced a letter from our minister, Mr. Thomas L. Thompson, a copy 
of which I have and will leave with you after reading it. 
The letter was read, as follows : 

We "beg respectfully to call your attention to the radical changes which have been 
enacted recently by the Brazilian Government in the matter of the relative position 
of wheat and wheat flour in the new tariff. While the import duty on the latter was 
raised from 24 reis to 32 reis per kilo, wheat, which under the old tariff paid an expe- 
diente tax of 10 per cent, has been made entirely free. This in itself is a heavy blow 
to the American shipping and milling interests, which for many years past have sup- 
plied tbe Brazilian markets with flour and have invested millions of capital, both in 
the construction of mills of the most approved pattern for the manufacture of flour 
suitable for this climate and in a large fleet of American ships trading between this 
port and Baltimore, wbich depends almost exclusively upon flour to supply their 
outward cargoes, carrying home coffee. 

In addition to the above disparity, we just learn of what we can not term anything 
but a most startling injustice, which, if continued, will utterly annihilate the already 
struggling flour trade between the United States and Brazil. We refer to differential 
freight rates which have been granted by the Government railroads to flour ground 
here over foreign-ground flour. We mention as an instance that the rate on foreign 
flour from Rio to Chapeo de Uvas, a station on the Central Railroad, is 242 reis per 
10 kilos, while flour milled here pays only 71 reis per 10 kilos. As we are largely 
dependent on interior points for a market for our American flour, it is obvious that 
under these conditions competition becomes impossible. 



STATEMENT OF MR. C. MORTON STEWART, OF BALTIMORE. 

Mr. Chairman and Gentlemen of the Committee : When the 
proclamation of this treaty was made, we got from Brazil $100,000,000 
of their produce, mainly rubber and coffee, and they got from us in the 
way of food supplies and other articles about $10,000,000 in value. 
They collect their revenue mainly upon export duties, which average 
about 10 per cent, and consequently they derive far more traffic from 
us than we do from them. This lex talionis could be very powerfully 
used by them for the benefit of their trade, if it were necessary; but 
there is no such feeling among them, because we have noticed in the 
last two or three years, which have been uninterrupted by revolu- 
tions, a great sympathy in our favor. That territory is 3,G00,000 square 
miles in extent, and our territory is 3,300,000 miles in extent. The great 
Eepublic of the Northern Hemisphere is in sympathy with the great 
Eepublic of the Southern Hemisphere, and consequently there is every 
logical reason to think that that which started so well would have gone 
on indefinitely until there would have been a commercial association 
and unity that would have bound us close to the Brazilian people. 
There is no doubt about it. Some people say, "Why in the worW don't 



270 RECIPROCITY STATEMENTS. 

our manufactures go down there to a larger extent?" The reason is 
obvious. The $90,000,000 we paid them has to be paid through English 
credits. 

I was traveling from Pernambuco down to Bahia on board a vessel 
with a gentleman named Taylor, who was a man of charming literary 
taste. He could repeat nearly everything that I suggested from the 
works of Sir Walter Scott, and I said to him, "How is it that you, a 
business man, can rind time to memorize so perfectly the works of that 
great author?" He replied that he had plenty of time, being the super- 
visor of credits of the Dugan Company, of Dundee, and stated that 
they always had a balance in their favor of at least $1,500,000. 

There is another thing. When slavery existed in Brazil, it was the 
duty, as well as the interest, of the planters to take care of their slave 
labor, and they raised hogs for food to an enormous extent. There is 
no better bacon than the Brazilian bacon, and it is quite suitable for that 
purpose; but when slavery was abolished, their freedmen being their 
labor, hogs became what might be called nomads, as well as the freedmen 
themselves, and consequently the State of Illinois and the Western 
country are now seeking that trade. Armour has sent there Mr. Eoss, 
a man of very great ability, to explore that country, and he has come 
home and says that he not only expects to continue the trade there, but 
to have a much more progressive one. 

America uses flour to the extent of 1 barrel per year to every man, 
woman, and child, so that we consume 67,000,000 barrels of flour. In 
Brazil, on the contrary, they do not use more than 1,000,000 barrels, 
although their population is about 16,000,000 people, according to the 
best census they have. There is no doubt that everything tends toward 
an immense increase in the consumption of flour, because the price is so 
low that it comes in competition with their own native product to such 
an extent that wherever you go — in Bahia, Rio, Santos, and Rio Grande, 
or elsewhere — you find the consumption of flour is increasing. That is 
also the case at Victoria. At the latter place last year they consumed 
18,000 barrels. 

There is nothing more for me to say, except that when the proclama- 
tion was made we looked upon it as the dawn of a much better day. 
When the revolution was in progress, we knew that England was anx- 
ious for the recognition of the monarchical party, which was opposed 
entirely to the sympathies of those people. We knew that Austria 
had proclaimed the same fact, and that France was in favor of the rec- 
ognition of the Orleans branch and had practically said so. America 
stood alone. It happened, very unfortunately for us, that the Adminis- 
tration determined to abrogate this treaty, owing to the application of 
the sugar question in the Wilson bill. I therefore say that, looking 
forward to the future, being governed by the light of the past, I think 
that reciprocity is the only way by which we can overcome the machi- 
nations of the English people, who are establishing mills and getting 
differential freights to the interior. I look, incidentally, to the railroads 
there being finally imbued with the spirit of American enterprise. 

The Chairman. Will you state to the committee, so that we can 
have it before us, what interest you represent that is affected by the 
repeal of the reciprocity clause of the law of 1890? 

Mr. Stewart. It is my own interest. I own six vessels, and I am 
building another. 

The Chairman. The vessels trading between what ports? 

Mr. Stewart. Between Baltimore and Rio, Santos, Pernambuco, 
and Bahia. 



RECIPROCITY STATEMENTS. 271 

The Chairman. What goods do you transport from this country to 
Brazil, and from Brazil in return % 

Mr. Stewart. Flour and provisions — provisions coming- from the 
West and from Baltimore, and also cotton-seed oil and the food prod- 
ucts of the whole country. 

The Chairman. What extent of territory in this country do these- 
products represent? 

Mr. Stewart. From Chicago come the provisions, and from the 
Chesapeake Bay and Richmond, as well as Harrisburg and other 
places, flour. The Argentina flour grows with no fibrous strength/ 
In Pennsylvania, Virginia, and in fact all iron countries, the wheat is 
celebrated for its keeping qualities. They gave it a certain name sixty- 
five years ago, which is still celebrated, and it is still demanded, much 
to our confusion, because, having this special demand name, they charge 
a premium for gratifying this antique taste. 

The Chairman. What was your trade in 1892 and 1893 as compared 
with 1394 and 1895? 

Mr. Stewart. The shipments from the United States in 1890 were 
672,329 barrels; in 1891, 765,902; in 1892, under reciprocity, 915,395 
barrels, an increase of 20 per cent; in 1893, 901,864 barrels; in 1894, 
930,141 barrels; in 1895, 842,955 barrels; and now all these vessels in 
which Mr. Levering is joined with us are standing idle at the wharves. 
I pay a tribute of gratitude to the American Government with peculiar 
feeling, owing to the circumstances that we received protection which 
enabled us to build our vessels of proper size instead of making them 
yachts. We could use them as yachts, but we do not care to do it 
just now. 

Mr. Levering. The wheat was higher than it is now. While the 
number of barrels increased the price was lower, so do not be mis- 
guided by statements in dollars and cents. A barrel of flour is a 
barrel of flour. 

Mr. Stewart. I can bring Mr. Armour from the West, the Pennsyl- 
vania millers and others, to give you information upon these points. 

The Chairman. We have sent notices to those gentlemen, and will 
have representatives of those firms before us. 

Mr. Stewart. Mr. Eoss is one of the most representative men I 
have ever seen. 

The Chairman. You speak of wheat of the Argentine Bepublic 
coming into competition with* ours. Please state that so we may 
understand it. 

Mr. Stewart. I have been consul of Argentina ever since I was a 
boy. In those days they devoted themselves particularly to grazing 
and the cattle trade. It has only been lately, in the last ten years, 
that the northern districts have commenced to look upon wheat as a 
desirable crop. This year it was nearly a total failure. Last year 
there was a superabundance, but of a low price, and I do not see how 
they can do very well in it. The railroads in South America are owned 
by English capital more than they are in this country. In this country 
English capital controls the bonded interest, but the equity of redemp- 
tion is in the American people, while in South America the English not 
only hold the bonded interest, but they have an equity of redemption 
and a consequent right of control. It is that feature that Mr. Levering 
has very admirably placed before you in the protest which he has placed 
in your hands. 

The Chairman. One of the complaints made by the millers of this 
country is that since the repeal of the reciprocity clause a large duty 



272 RECIPROCITY STATEMENTS. 

has been placed upon American flour entering Brazil, and, as you 
state, the wheat is admitted there free from Argentina; the flour mills 
of Brazil are owned by foreign capital largely, and, in addition, the 
English railroads give discriminating rates in favor of the transporta- 
tion of flour manufactured by these British mills as against the flour 
imported from America. 

Mr. Levering. That is true. This is the last vestige of the regular 
American merchant marine doing business with that country. 

Mr. Stewart. I think you ought to say of a certain degree of excel- 
lence, owing to the fact that they are the vehicles for perishable cargo. 
We have never had in ten years any marine rejections, whereas when 
we are obliged to charter we have personal reclamations. We are 
obliged in our own business to secure vessels of standard excellence. 

Mr. Levering. Flour represents 75 per cent of the cargo. Blot 
that out, and the vessels have got to be sold. 

The Chairman. In order to protect American interests in the trade 
in Brazil, you think it is important not only to have this reciprocity 
clause restored which we had under the law of 1890, but to have it 
extended so that American products after they reach Brazil shall be 
treated as fairly as the domestic flour or any other product*? 

Mr. Stewart. You have stated it better than I possibly could. 

The Chairman. Can you give the committee, in dollars and cents, 
the actual amount of the trade that you carry from this country? 

Mr. Stewart. Last year our individual shipments were $1,600,000, 
being over £300,000. 

The Chairman. How much has the trade fallen off since the repeal 
of the reciprocity clause? 

Mr. Levering. Do not forget the point of the terrible decline in 
prices last year. There might be an increase in the exports, whereas 
in dollars and cents there might be a decrease. 

Mr. Stewart. The average price of flour previous to last year was 
from $4 to $4.50, and since that the price has been from $2.85 up to 
$3.70. Provisions have been lower in about the same ratio to the 
enormous crop of corn in this country. We had 2,500,000,000 bushels 
of corn, an unprecedented crop. In its convertible quality as human 
and animal food it represents the greatest crop ever known in this 
world, in a monetary point of view. 

We would like to know whether you desire us to supplement our 
statements by any written ones. * 

The Chairman. We would be very glad for you to do so. These 
hearings will be printed for the benefit of the House and the country. 



STATEMENT OF CHARLES A. COTTERILL, REPRESENTING PARKE, 
DAVIS & CO., MANUFACTURING CHEMISTS, DETROIT, MICH. 

Mr. Chairman and Gentlemen of the Committee : I desire to 
say that I will consume as little of your time as possible. I have here 
a few statements in regard to our business, which I would like to read 
and have incorporated as a part of my remarks. 

The paper was read, as follows : v 

1. Q. Give full name and address of firm or company. — 1. A. Parke, Davis & Co., 
Detroit, Mich., with branch houses at New York City, Kansas City, Baltimore, and 
New Orleans, and branch factories at Walker ville, Ontario, Canada, and London, 
England. 



RECIPROCITY STATEMENTS. 273 

2. Q. Lines of manufacture. — 2. A. As manufacturing chemists we manufacture a 
line of fluid and solid extracts, in the manufacture of which a great deal of alcohol 
is used, sugar and gelatin coated pills, medicinal elixirs, sirups and wines, com- 
pressed medicinal tablets and tablet triturates, medicated lozenges, oleates, and 
gelatin capsules containing medicinal substances. We are also compressors of botan- 
ical drugs, such as herbs, leaves, flowers, barks, and roots, for druggists' use. We 
also manufacture* malt extracts, digestive ferments, and a line of other pharmaceu- 
tical products too numerous to mention. 

3. Q. The amount of capital, number of persons emploved, and value of annual 
product.— 3. A. The capital stock of the corporation is $2,000,000; $1,200,000 paid in. 
The number of employees varies, with an average of about 1,200. The value of the 
annual product which is handled from year to vear, with sales during 1895, amount^ 
to over $2,000,000. 

4. Q. Do you find your market at home or abroad; and if both, in what propor- 
tion? — 4. A. We find our market both at home and abroad, principally, of course, at 
home. About 121 per cent of the total sales are made abroad. 

5. Q. Do you sell directly to foreign dealers or through commission houses? — 5. A. 
We sell directly to foreign dealers; very seldom sell through commission houses, 
but have established agencies in Australia, Germany, Austria, Belgium, Italy, and 
Switzerland, with large supply depots with wholesale druggists in the Hawaiian 
Islands, Cuba, China, etc., a part of which are supplied either directly from the 
home office at Detroit, Mich., or through the branch house at London, England. 

6. Q. Have you made any direct effort to extend your foreign trade; and if so, by 
what means, and with what success, and in what countries? — 6. A. We have made 
direct efforts to extend our foreign trade, first, through the direct efforts of branch 
laboratories in Canada and in England; also through agents in the countries above 
named, while a number of traveling representatives are looking out for our interests 
in Australia and India, while a special representative from time to time visits the 
agencies in Europe, and off and on a special representative makes the round of the 
globe, looking after our interests in all far-away countries. 

We also cultivate trade abroad through the issuing of price lists applicable to 
different foreign countries, descriptive catalogues, circulars, samples, etc. How 
successful we have been in the introduction of these products is shown by the com- 
parative statement given later on with reference to the increase in the sales abroad 
during the last six years, which increased from 4£ to 12-£ per cent. 

7. Q. Are you aware of any discrimination or obstacles in the laws or customs 
regulations of any foreign country that has restricted or prevented the extension of 
your trade; and if so, can you suggest any means by which they may be removed? — 
7. A. A flagrant discrimination has come to our attention lately through the deci- 
sion arrived at by the Austrian customs authorities in classifying certain of our 
products, into the manufacture of which alcohol enters, among either gums and 
resins, or arrack, brandy, liquors, etc., even if used for medicinal purposes. On 
account of the fact that whisky, brandy, etc., are once in a while used for medicinal 
purposes our medicinal fluid extracts, for instance, have been classed in Austria 
under this heading, and are made subject to a duty of 60 florins gold per 100 kilos 
gross weight when introduced into Austria or Hungary. There is in the Austrian 
tariff laws a provision for medicinal preparations that are rated at 24 florins gold 
per 100 kilos gross, and under which heading, according to our ideas, the fluid 
extracts and similar alcoholic preparations should be classed. Without taking into 
consideration the fact that we are, under the circumstances, almost obliged to use 
alcohol on which a tax or duty has to be paid, we are at a great disadvantage in 
competing with Austrian, German, and other manufacturers, who work with free 
alcohol when used for medicinal purposes. Sixty florins gold per 100 kilos gross 
means about 120 florins gold per 100 kilos, or about 220 pounds net, and this duty is 
considered by us excessive, and it is certainly an obstacle to the successful introduc- 
tion of our products into Austria-Hungary. In other cases we meet with similar 
obstacles on account of the" use of tax or duty paid alcohol, especially when duty 
ad valorem is levied. 

W T hile provisions have been made for the repayment of duty paid on imported 
alcohol used in the manufacture of these products, the conditions under which the 
rebate can be obtained have been found by us so burdensome that we have discon- 
tinued making claims upon the Government for the repayment of such duties thus 
paid, while foreign manufacturers of alcohol, knowing that we were obliged to 
import alcohol for such purposes instead of using homemade alcohol, acted more 
or less independently and charged high prices for such alcohol imported into our 
country as compared with the prices at which homemade alcohol could be procured 
if no tax had to be paid thereon. We have thereYore taken steps with the repre- 
sentatives for this State in Congress and in the Senate, with members of the sub- 
committee on Ways and Means, to have the law amended so as to allow us and 
other houses in the same position to use homemade alcohol for the manufacture of 

H. Eep. 2263 18 



274 RECIPROCITY STATEMENTS. 

medicinal products in the manufacture of which alcohol is used when exported, so 
as to obtain the drawback on the tax paid on alcohol when used for such purposes. 
Some of these obstacles have been overcome through the establishment of a branch 
laboratory in Canada and in England, though such laboratories have been estab- 
lished at great expense and which materially decreases the profits made upon goods 
thus manufactured on the smaller scale, as far as the foreign trade, according to the 
percentage represented in this report, is compared with the sales of our products in 
this country. 

A further discrimination is felt by us and obstacles are put in our way in the man- 
ufacture of certain of our products into the composition of which there enter chemi- 
cals which have to be imported, principally from Germany. These obstacles are caused 
by the peculiar laws of this country. We will give an example, though we can not 
vouch for the exactness of the figures given, as the time since the communication of 
March 4, as issued by the Committee on Ways and Means, reaches us and the time 
in which a reply is expected is so short. We will quote the article sulphonal as an 
example of this class. While originally there was only one concern of manufactur- 
ing chemists in Germany who put this new medicinally valuable product upon the 
market, in course of time two or three more manufacturing concerns discovered dif- 
ferent ways by which they obtained the same results, namely, produced the same 
product. Though three or four processes for the manufacture of the product were 
patented, a healthy competition was caused and the price of the product was greatly 
reduced, and it was made available to the druggists and physicians for the treatment 
of disease at reasonable prices. The manufacturers of course looked for a large out- 
put of this product to the United States, and finding that our laws were favorable 
to them, though unfavorable to us, they formed a trust, took out patents for the 
manufacture of snlphonal, trade-marked the name "sulphonal" in this country and 
protected the product itself by patent, established an agency in this country, and, 
so to speak, put on the screws, which means that while the article could have been 
bought in Europe at about 25 cents per ounce, manufacturers were obliged in this 
country to pay about $1.20 per ounce for the same article. As soon as other manu- 
facturers in Europe found ways and means by which to manufacture the same prod- 
uct by different processes, the price paid was further reduced; but as the name was 
protected by trade-mark in this country, as the process for its manufacture and the 
product itself was patented, the original syndicate or trust had their own way and 
the price of the article has not, at least not materially, decreased of late years, and 
American manufacturers are obliged to pay tribute to the sole agents in this coun- 
try for the foreign manufactures and indirectly to the foreign manufacturers them- 
selves. A like state of affairs exists with reference to antipyrine, phenacetine, and 
other similar products. On the otber hand, these same products can be purchased 
and used in Canada, for instance, at much lower rates, and if they enter into the 
composition of any product which is needed for export, it will necessitate, in order 
to be able to conrpete at all, that these products be made in the Dominian of Canada, 
where the laws are more favorable to competition in the markets of the world. On 
the other hand, cases have been reported where these products have been smuggled 
from Canada into the United States, and certain unscrupulous parties have been 
able to obtain the articles at lower rates than we have been obliged to pay to the 
agents of the foreign manufacturers, and prices have been so reduced that all mar- 
gin of profit to us was eliminated, while the unscrupulous parties referred to were 
able to make a profit, even if they were to sell the products at our cost prices. 
There exist, therefore, obstacles in our laws which do not enable us to compete suc- 
cessfully with the Dominion of Canada, for instance, which is so near to our doors. 

8. Q. What changes have recently occurred in the tariff of foreign countries, so 
far as they relate to your lines of manufacture? — 8. A. We have not given much 
consideration to this question, in so far as we leave the selling of the products fur- 
nished by us entirely to the judgment of our branch houses and to our agents, the 
latter purchasing our goods generally free on board New York and establish their 
own selling prices, in harmony with the tariffs existing in their countries. The only 
change that has occurred is the one to which we have referred in the above, viz, 
the establishment of a duty of 60 florins, gold, per 100 kilos, gross, for products of 
our manufacture in the preparation of which alcohol is used, and which articles in 
the finished state contain alcohol. We refer to this particularly because it has been 
brought to our attention specifically, as follows: 

A special representative of oiir house made a tour of Europe and interviewed the 
agencies at Vienna. To our surprise we learned from Messrs. G. & R. Fritz, whole- 
sale druggists, of Vienna, Austria, that in July, 1895, when our representative visited 
them, certain goods had not been released from the customs department which 
had been shipped by us in March and May, 1894, because our agents refused to pay 
the high duty of 60 florins, gold, per 100 kilos, gross, because they did not think it 
fair to classify such articles under "either gums and resins," or with arracks, whis- 
kies, brandies, etc., even if used for medicinal purposes. As they refused to pay the 



RECIPROCITY STATEMENTS. 275 

duty which the authorities thought it wise to demand the goods were not taken out 
of the custom-house, and through long storage in such custom-house the quality of the 
goods has certainly not improved, though it is difficult to state to what extent the 
quality has deteriorated. Through the assistance of the American consul at Vienna, 
the Hon. Max Judd, Ave succeeded in obtaining at least a decision, rendered on August 
28, 1895, by which the goods were definitely classed under the heading above men- 
tioned, and were made subject to a duty of 60 florins, gold, per 100 kilos, gross, and 
which classification we consider an unjust one. 

9. Q. How far would the removal or reduction of customs duties imposed by for- 
eign nations on the merchandise in which you deal aid in the extension of your 
export trade? — 9. A. The reduction of customs duties imposed by foreign nations 
upon merchandise in which we deal would certainly tend to a great increase in the 
sale of our products in competition with other countries, with particular reference 
to German manufacturers, who undersell us in all parts of the world. The reputa- 
tion of some of these German manufacturers is no doubt as good as ours. They have 
been established in business for many more years than Aineujcan manufacturers have 
been, some being known as manufacturers for hundreds of years, and on accouut of 
the reputation of the houses certainly no pressure can be brought to bear upon our 
customers to handle our products in preference to those issued by such German 
houses at much higher prices. But our business being a peculiar one we may not 
feel this competition as much as other houses may feel it. The products which we 
manufacture are intended solely for use in Jilling prescriptions upon the order of a 
physician who is convinced that the products issued by us have superior merits, and 
therefore can be sold in regular competition with ordinary articles of manufacture. 
AVe can therefore only rely upon the genuineness of the drugs employed, the skill 
exercised in -the manufacture of the preparations therefrom under a uniform high 
standard to prove our standpoint with foreign physicians, which requires the expen- 
diture of large amounts, through traveling representatives, through the dissemina- 
tion of scientific literature, the supplying of samples to medical men, so as to give 
them an opportunity to convince themselves of the superior quality of our goods, so 
that they may prefer our preparations at the higher prices to other goods issued 
under the same name by the German manufacturers alluded to and others, which 
are sold at much lower prices. 

10. Q. What is the output of your establishment compared with that of six years 
ago? — 10. A. The output of our establishment during the last six years, including 
home and foreign trade, has increased about 70 per cent. The output in the export 
department has during the same term of six years increased only about 8 per cent. 

11. Q. How does the present cost of production compare with that of six years 
ago, including wages, the cost of raw material, and transportation rates by sea and 
land? — 11. A. We can not trace any material decrease or increase in the cost of 
production dtiring the six years. This may be partly due to the fact that we have 
manufactured in 1895 on a much larger scale than we manufactured in 1889. If to 
the cost of production there should be added certain expenses connected with the 
introduction of the goods the comparison becomes more difficult, because it will 
depend entirely upon the efforts made in the direction of increased traveling force, 
increased supplies of printed matter, samples, etc. The cost of raw material changes 
constantly, and the tendency is rather toward lower than higher prices. Trans- 
portation rates by sea or land have not changed very materially, though brisker 
competition among railways and steamboat companies tends toward a decreased 
expense in this direction. 

12. Q. How do the present selling prices compare with those of six years ago? — 
12. A. The tendency is decidedly downward. Competition is constantly increasing 
through the establishment of new houses in our line. Lower prices and better terms 
of payment are constantly offered in the strife to secure trade, and it means either 
to reduce prices by an increased rate of discount, if goods are sold at a discount from 
list jirices, or extension o'f time, which means the same thing. We, in our posi- 
tion, however, may not feel this pressure quite as much as manufacturers in entirely 
different lines, such as the manufacturers of appliances, instruments, apparatus, etc., 
manufactured from such articles as wood, iron, copper, tin, silver, etc., we dealing 
more particularly with the professions of medicine and pharmacy and not w r ith trade 
generally, our articles not reaching the public directly, but through the advice of 
medical men, the competition can not be felt as keenly. 

13. Q. What competition do you meet with from foreign manufacturers, and in 
what markets? — 13. A. We have referred to this matter indirectly before by referring 
particularly to the German market, though, as far as the English branch is con- 
cerned, we naturally feel the inilueuce of English competitors not only as far as 
Great Britain itself is concerned, but also her colonies, in which sympathy naturally 
is in favor of English versus American manufactures, especially when political 
clouds appear upon the horizon and which stir up the patriotic feeling for the 
respective countries and against America. 



276 RECIPROCITY STATEMENTS. 

14. Q. What advantages do your foreign competitors have over you in the cost of 
manufacture in transportation charges to foreign markets? — 14. A. The advantages 
may principally lie in the closer proximity and the better shipping facilities existing 
between different markets. Thus, shipping facilities from England to most of her 
colonies are far better than those between New York and such colonies. The German 
manufacturers bestir themselves to go after foreign trade, especially through the 
colonial policy pursued by tbem. Foreign competitors in our line, as stated pre- 
viously, have the advantage of employing free alcohol, at the rate of about 30 cents 
per gallon, versus $2.30, or thereabouts, per gallon, which we have to pay for alco- 
hol, as we do not think it worth while to take advantage of the provisions of the 
law which allows us to use alcohol of foreign manufacture, upon which we pay a 
duty, as above explained. There are, besides, such factors as cheaper labor, cheaper 
rents, cheaper raw material, cheaper methods of living, that will give certain foreign 
manufacturers advantages over American ones. 

15. Q. To what extent can you compete with foreign manufacturers in quality and 
price ? — 15. A. We can certainly compete in quality, though we can not attempt to com- 
pete in prices, as explained previously, taking into consideration that our line of 
manufactures is a peculiar one and one that can not be classed with general manu- 
factures. 

16. Q. Has the total product of the United States in your line of manufacture in- 
creased or decreased during the last six years ? — 16. A . The total product of the United 
States in our line has certainly increased during the six years, but to what extent 
we are unable to say without looking up statistics, to which we may have but 
unsatisfactory access. 

17. Q. What proportion of the total present and possible output of your lines of 
manufacture in the United States can be absorbed by the domestic market, and what 
would be your estimate of your surplus for export if all manufacturers in your line 
were to pioduce to their full capacity? The purpose of this inquiry being to secure 
as accurate an estimate as possible as to the necessity for new foreign markets for 
the manufacturers of the United States. — 17. A. It is impossible to give a reply to this 
question, especially when the short time allowed us is taken into consideration. 

18. Q. Was the general effect of the reciprocity treaties made in 1890 favorable or 
unfavorable to the export trade of the United States, and what was the effect of 
their repeal? — 18. A. We can not say that in our line the effect of the passage of the 
treaty or its repeal has been markedly noticed, as we accommodate ourselves to exist- 
ing circumstances, whatever they may be, and even if unfavorable to us make the 
best of them. 

19. Q. What was the effect upon farm products, particularly? — 19. A. We are not 
interested in farm products in a general way. 

20. Q. Do you favor the application of reciprocity, particularly to future tariff 
legislation, and the enactment of a general law authorizing the President to negoti- 
ate reciprocity treaties with both European and American nations, so far as possi- 
ble? — 20. A. Our foreign efforts have been very limited, notwithstanding the fact 
that in the United States of America we do by far the largest business in our line. 

The reasons why we have been unable to accomplish much abroad are as follows : 

Our lines of products are based upon the formulas of the United States Pharma- 
copoeia, while all civilized foreign countries authorize the sale and dispensing of only 
such products as are based upon the pharmacopoeia official with them. To meet all 
these requirements would demand a separate line of products adapted to the standard 
of each foreign country which we desired to supply, which would involve so large an 
expense as to render the operation unprofitable, with due consideration to the 
limited output under any circumstances. 

The prejudices of the medical profession, who are our only true clientele. Physi- 
cians educated in foreign colleges are taught to use the pharmaceutical products 
which are current or popular or official in such countries. It takes a long time to 
change a physician's habits in this respect. He gets accustomed to the dosage, the 
standard, and the physical peculiarities of the pharmaceuticals that he has been 
taught at college or by experience to use, and hesitates to make a change for exactly 
the same reasons that physicians taught to estimate weights and measures in the 
old Troy system hesitate to substitute therefor the metric system. 

Foreign countries, with especial reference to France and Austria, are very restrict- 
ive in their tariff as against the admission of pharmaceuticals which do not corre- 
spond in every respect to their established tests, and which are often quite contrar3 r , 
as well as inferior, to those of our own pharmacopoeia. 

The enormous tax on alcohol renders our export of alcoholic products quite imprac- 
ticable to any great extent where brought in competition with similar products 
abroad. This is the case notwithstanding the fact that certain privileges with 
regard to rebate are given, because such privileges are attached to so much red tape 
and expensive restrictions that it pays us not to avail ourselves of them. 

Summing up the whole matter, we should say that the extension of our foreign 



RECIPROCITY STATEMENTS. 277 

business Las been restricted because of foreign standards, the teaching and the cus- 
toms of physicians, the prejudices of foreigners, tariff legislation, and the cost of 
alcohol. This statement must be taken in connection with the fact that onr business 
is a peculiar one, and that its success is largely based upon an established reputation 
for honesty and integrity. Here in America that reputation has been established, 
but in working abroad we are compelled to combat the fact that we are unknown, 
and therefore subject to suspicion, especially as we are foreigners, while on the 
other hand the native dealers have accomplished what we have accomplished in 
this country, and stand almost impregnable against a short attack. In other words, 
the only way for us to establish ourselves thoroughly in any country is to open up a 
local manufactory and distributing point, with intention of lighting it out on that 
line for years if necessary, until we have created that confidence which is absolutely^ 
essential to a success in the pharmaceutical business. 

As to reciprocity, wo have been absolutely shut out for above reasons from any 
business of importance with the South American States; but in addition we are com- 
pelled to combat the fact that the Germans, English, and French have entrenched 
themselves so strongly, financially and commercially, in all the principal South 
American ports that it is more than difficult for an American house, trammeled by 
the restrictions which I have outlined, to get a foothold. Wo have tried it several 
times, but have only onr expenditures to show for our pains. 

There is one point to which I want to invite your attention, and that 
is the unjust discrimination of Austria-Hungary in regard to pharma- 
ceutical preparations. Last year we sent a special representative of 
our house to interview our agent, and to his great surprise our repre- 
sentative found a certain quantity of our goods had not been released 
from the custom-house, although they were shipped in March and May, 
1894, because our agent refused to pay 60 florins duty, as he considered 
it unfair. They classed our medicinal preparations as " edibles," which 
was perfectly ridiculous. An investigation disclosed the fact that they 
had actually classed as edibles some of the most deadly poisons known 
to the pharmacopoeia, such as aconite and henbane, either of which 
would kill a person in a few minutes. They also classed our pharma- 
ceutical preparations as whiskies and brandies, and charged a high 
rate of duty, according to their tariff bill, instead of classifying them 
as medicinal preparations. 

The Chairman. The object was to compel the American importer to 
that country to pay a higher rate? 

Mr. Cotterill. Yes, sir; to compel us to pay 00 florins instead of 
24, as provided for under the medicinal schedule. They took the ground 
that, because alcohol was in them, they were not medicinal prepara- 
tions. There is more or less alcohol in all pharmaceutical preparations. 
They would decay if this were not so. We are also absolutely prohib- 
ited from introducing our goods into France for the same reason. 

The Chairman. How long has this prohibition existed in France? 

Mr. Cotterill. It has existed for years. We have never been able 
to get into France. 

The Chairman. How long has the prohibition in Austria-Hungary 
existed by reason of the construction of classification? 

Mr. Cotterill. For a considerable period. 

Mr. McLaurin. Do they treat medicines from all other countries in 
the same way? 

Mr. Cotterill. No, sir; only those from America. We are handi- 
capped, because in Europe the manufacturers are entitled to alcohol 
free of duty or tax, and we have to compete against them and pay a 
tax upon our alcohol. 

The Chairman. You say that you are prohibited from going into the 
markets of France. Are English tradesmen in the same line of busi- 
ness prohibited in the same way, or are they permitted to introduce 
their goods? 



278 RECIPROCITY STATEMENTS. 

Mr. Cotterill. They are, for the simple reason that the importer of 
English goods can afford to pay the high duty. 

Mr. McLaurin. You spoke of medicinal preparations being classed 
as fcod. Suppose the same thing was shipped from England, would 
they class it as food or medicine? 

Mr. Cotterill. As I understand it they would class them as medi- 
cines against the English, but as foods against the United States. It 
is perfectly ridiculous, this discrimination. We brought the matter to 
the attention of Max Judcl, the American consul at Vienna, and he in 
turn brought it to the attention of the Austrian Government, and they 
simply maintained their position that these things were wines, whiskies, 
and edibles, and that they should be charged the higher rate. 

Mr. McLaurin. How do they justify or explain their position when 
those articles come in from England? 

Mr. Cotterill. They do not justify or explain them. They give us 
the alternative of leaving the goods to decay or else paying the 60 
florins. 

The Chairman. What is your experience in the other European 
countries? 

Mr. Cotterill. We have not been treated so badly in the other 
European countries as in Austria and France. Our products are based 
on the United States Pharmacoi)0?ia, while those in foreign countries 
are based on the pharmacopoeia which is official with them. 

Section 22 of the Wilson bill is the same as existed in the previous 
laws and the Mclvinley bill. We can not import alcohol and manu- 
facture it into products intended for export without great confusion 
and laying ourselves liable to a charge of fraud, because the law 
requires the identical alcohol to be used, and it must be identified on 
the wharf before we ship it out of the country. Our list contains thou- 
sands of different medicinal articles, and in order to avail ourselves of 
that law when we exported the product we would have to separate 
them and state that the products were made from domestic or foreign 
alcohol, as the case might be, which renders it impossible for us to avail 
ourselves of it. If we were not compelled to do that, we could compete 
with the foreign manufacturers, particularly the Germans. We use the 
best alcohol and pay $2.20 for it. 

The Chairman. Can you go into the German markets under the 
same condition as your competitors can? 

Mr. Cotterill. No, sir. They have a great advantage over us. 
Every pound of fluid extract shipped to Germany represents so much 
alcohol, tax paid. We have to pay the tax, whereas they have free 
alcohol. In this matter we are fighting on the ground of quality and 
superiority of preparations. We are basing all our efforts upon the 
strength of that. I have spoken about the different standards in 
respect to the pharmacopoeia. We have built up a reputation for hon- 
esty and integrity. There are many manufactures of drugs, but the 
productions of some are absolutely inert. There are too many such 
on the market. 

The gentleman who preceded me spoke about flour. I might say, 
there is flour and there is flour. It is a matter of quality entirely in 
dealing with medicines; the purest and best ought always to be pro- 
vided, but such is not always the case. We have established a labora- 
tory in Canada, across from Detroit, where we employ several hundred 
])eople. We have also established a laboratory in England in order to 
partially meet foreign competition. We are transacting a business 
there now on a small scale. Almost all our shipments to Australia 



RECIPROCITY STATEMENTS. 279 

come direct from Detroit; and even in Australia we have to pay a 
heavy duty, which correspondingly increases the cost of the goods to 
the consumer. 

The Chairman. France and Austria are the only countries you have 
to contend against in Europe? 

Mr. Cotterill. Those are the principal ones we have to contend 
against, and if we could only manufacture with imported alcohol with- 
out so much "red tape,' 7 we could compete with them. 

The Chairman. You are not speaking of the internal-revenue tax 
on alcohol in this country, but of the impositions in foreign countries! 

Mr. Ootterill. Loth. 

The Chairman. The object of your addressing the committee is to 
see if there can be any remedy by way of commercial treaties? 

Mr. Ootterill. Yes, sir. On general principles, we favor reci- 
procity, but so far Ave have not received any benelits from it. 

The Chairman. Did you attempt to extend your trade in South 
American or Cuba under reciprocity? 

Mr. Ootterill. Yes, sir. Soon after the Pan-American Congress 
came to this country I conducted negotiations with the State Depart- 
ment for the purpose of granting us letters to a South American chem- 
ist. We wanted a man who understood the language to represent us, 
but the experiment was an absolute failure. 

Mr. McLaurin. What countries? 

Mr. Cotterill. All of them. 

The Chairman. Why was it a failure? 

Mr. Cotterill. Because the English and Germans are too strong 
for us. 

The Chairman. Two conditions would favor you in the extension of 
your trade: First, a treaty of reciprocity between the respective coun- 
tries, so that you would be under favorable conditions as compared to 
your foreign competitors? 

Mr. Cotterill. That is it exactly. 

The Chairman. I wish that you would state to the committee the 
number of employees you have in this country? 

Mr. Cotterill. We have about 1,400 employees In the United 
States and about 500 in Canada and England. 

Mr. McLaurin. You say you have a laboratory in Canada and one 
in London. You could snip goods from Canada to Germany or any 
place else like the English, I suppose? 

Mr. Cotterill. JSTo; we can not. We tried it, and found we could 
not. We met with the same opposition. 

Mr. McLaurin. When you ship from London? 

Mr. Cotterill. Y r es; from London; because we have not become 
established in reputation over there as manufacturers. 

The Chairman. What you are seeking to do is to have our Govern- 
ment, by reciprocal trade relations, so arrange the matter that you 
can go into those countries on favorable conditions without those 
restrictions? 

Mr. Cotterill. Yes, sir. 

Mr. McLaurin. I wanted to know the difference in your English and 
Canadian laboratories? 

Mr. Cotterill. So long as we have not our reputation established, 
we will have to go on at great expense, and wait a long time to get a 
foothold. Our house has an established reputation in this country, and 
with the proper treaty relations there would be no necessity for conduct- 
ing branch laboratories. 



280 RECIPROCITY STATEMENTS. 



STATEMENT OF MR. L. F. S. SCHENCK, OF MARLBORO, IT. X, REPRE- 
SENTING THE MONMOUTH COUNTY BOARD OF AGRICULTURE. 

The Chairman. This hearing will be reported and printed. It is 
the object of the committee to confine all persons appearing before us 
exclusively to the subject of reciprocity, as to its effect upon domestic 
trade and the effect of the repeal of the reciprocity clause upon our 
foreign trade, and whether foreign countries have discriminated against 
our exports. You are president of the State board of agriculture of 
New Jersey, and we would be much pleased to hear you. 

Mr. Denise. Mr. Schenck, representing the Monmouth County Board 
of Agriculture, has prepared a paper, and I would be glad if you would 
first hear him. 

Mr. Schenck read the following paper: 

Gentlemen of the Committee : We are pleased at the gracious 
opportunity offered us as a committee appointed by the Monmouth 
County Board of Agriculture to present to you the resolution unani- 
mously adopted at its recent meeting in Freehold, N. J., and to be heard 
touching the repeal of the reciprocity treaty with Spain, and its effect 
upon the exports of American potatoes to Cuba, especially from Mon- 
mouth County. 

It is first important to understand our capacity as a potato-growing 
section, and then the effect of closing the potato market in Cuba upon 
the business interests of our county. We are located in the marl dis- 
trict. Its abundant application as a fertilizer for many years has made 
a fertile soil, and adapted it especially for the growth of potatoes. Com- 
mercial fertilizers are extensively used, furnished by agents conveniently 
located, or purchased in New York as raw materials, upon the unit basis, 
by the farmers with an intelligence which would do justice to a scientist, 
reducing cost or waste, so necessary, where from 5 to 30 tons yearly, 
costing from $150 to $1,140, are used upon each farm. With so large 
an outlay at planting, it is not only important to increase the yield, but 
to find paying prices. Our home markets are Philadelphia and New 
York, and their adjacent cities. At the harvest, with abundant carry- 
ing facilities by rail and water, the large shipments in two days, with 
no outlet, will block every market. Many place on board cars from 40 
to 200 barrels daily; 2,222 barrels were loaded at one station in a single 
day; 76,000 barrels were shipped from Freehold in the short space of 
three months ; at the same time as many as 9 carloads were shipped 
from other stations daily, and the boats plying between Matawan, Key- 
port, Redbank, and New York were running loaded to their utmost 
capacity. Previous to August 28, 1894, such shipments were needed 
to supply the demand. When that day potatoes dropped 50 cents per 
barrel an order for 10,000 in Freehold was countermanded. In 1895 



RECIPKOCITY STATEMENTS. 281 

there was no outlet, and the market glutted; potatoes dropped to G5 
cents per barrel. The present offer at Freehold is oO cents per barrel. 
Why the change! A duty has been imposed in Cuba of $1.20 per 
barrel upon American potatoes in retaliation for the duty upon its sugar, 
while English' potatoes are admitted free. It is a large tax, and has, 
closed that market to this country. The loss falls principally upon the 
farmers and citizens of Monmouth County, for the reason that our pota- 
toes ripen and are ready for shipment at the very time when they are 
most needed in Cuba, and command the highest price. * 

Farm values have declined from $200 to $70 — aye, $60 per acre — with 
no buyers; merchants with lost trade are waiting for the sale of their 
goods and collection of bills unpaid; artisans are in need of work, benev- 
olent collections are reduced to a pittance, and women and children 
asked to support the church. It is a condition of dissatisfaction and 
unrest, and the people are clamoring for better times. With the potato 
crop of New Jersey marketed abroad in its season, our neighboring 
cities — the two best markets on this continent — will be open the remain- 
der of the year for a supply from other States. Shall the market in 
Cuba be free? 

Under adverse legislation we have been driven, first, from our most 
profitable grain market, now from our best potato market, and we 
acknowledge, however galling it may be, that we are crippled in purse, 
and that we stand fleeced like sheep ready for the shambles. Amid this 
hurricane of wreck, we can not remain unmoved by emotion as if it were 
the evening zephyr. Before all is lost, we cry, "Save, or we perish!" 
May the legislator answer, "Peace, be still"? I now present, with the 
preamble, the resolution : 

Whereas a duty of $1.20 per barrel is imposed in Cuba ivpon American potatoes, 
while English potatoes are admitted free, thereby practically closing the Cuban 
potato market to this country, the loss falling principally upon the farmers and 
citizens of thus county, as the potatoes grown here are ready for shipment when 
needed in Cuba and command the highest price, allowing 10 per cent exchange — to 
the growers of 1,000 barrels a loss of $1,080, of 2,000 barrels* $2,160, and so on, pro- 
portionate to the acreage and yield, amounting in the aggregate to nearly $1,000,000 
yearly— 

liesolved, That the Monmouth County Board of Agriculture, assembled at the 
court house in Freehold, N. J., knowing that the embargo imposed by Spain in 
Cuba upon American potatoes, which is depriving us of our best and only market 
for the surplus, is in retaliation for the tax upon foreign sugar, which promoted the 
interest of the sugar trust at the expense of the American agriculturist, we can but 
characterize as a burning wrong. That we find no just cause, neither can there be 
any good reason why our citizens should be deprived of a market which is open to 
Englaud. We therefore most respectfully petition the Congress of the United States 
to restore the reciprocity treaty with Spain, so equitable to all and unjust to none. 



STATEMENT OF MR. D. D. DENISE, PRESIDENT OF THE NEW 
JERSEY STATE BOARD OF AGRICULTURE. 

Mr. Chairman and Gentlemen: I appeared some years ago — I 
think in 1890, before the Committee on Ways and M6ans, when Mr. 
McKinley was ehairman — upon the tariff question, and the committee 
at that time very kindly took into consideration the claims we presented, 
and I may say grantee! everything we asked, so that we went along as 
farmers quite swimmingly for a number of years; but, as has been stated 
by my friend, when this duty was imposed upon our potatoes which we 
shipped to Cuba, of course it came pretty nearly wiping us out of 
existence, so far as we are linancially concerned. 



282 RECIPROCITY STATEMENTS. 

Monmouth County, N. J., ranks among the first agricultural couuties 
of the United States. I think there is but one, and that one in Penn- 
sylvania, which is more important. There may he some in the Western 
States with which I am not familiar. When I first started in business 
as a farmer lands cost from $150 to $200 an acre, and now they have 
dropped down until there is almost no bottom in prices. It has gotten 
to be a life and death struggle as to whether we can live. I think it is 
an undisputed fact that when the agricultural industry is depressed 
almost all other industries are depressed, because agriculturists are the 
producers of wealth. This is the foundation of the whole of our trouble. 

Mr. Tawney. You say that after 1890 for a few years the farmers of 
New Jersey got along very well. How much of your product was sold 
to the surrounding towns and cities of New Jersey as compared with 
that which you have been able to dispose of since 1894? 

Mr. Denise. 1 do not know that I would be able to give you the 
figures, but the proportion would be very small. 

Mr. Tawney. Has the demand for your products been the same since 
1894 as before? 

Mr. Denise. I see no reason why it has not been. I think it has, but 
we do not know what to do with the product, because we have no out- 
let for it. Potatoes are selling at 10 cents a bushel, and anybody who 
knows anything about farming is aware that we can not live and produce 
potatoes at that price. As my friend has suggested, I remember dis- 
tinctly that previous to putting the duty on sugar coming from Cuba 
our potatoes dropped 50 cents a barrel in forty-eight hours. We have 
had control of the Cuban market from 1890 until 1894 in a great meas- 
ure, but now it has been turned over to the English market, and of 
course it has affected our agricultural products terribly. The amount 
of foreign hay received in New York City since the first of September 
amounts to one-third of all they receive; so that you can see how it 
affects us. 

Tbe Charm AN. Where does it come from? 

Mr. Denise. From Canada. 

The Chairman. From where do the potatoes come that take the 
place of the American potatoes in Cuba? 

Mr. Denise. They mostly come from Canada. Two years ago, in 
1894, I visited Canada. I wanted to look up the agricultural industry 
there, and I went over about the middle of September, or a little later, 
and 1 saw that every man was putting up hay. I asked them why it 
was, and they said that the duty had been taken off hay, so that they 
could ship it into the United States. 

We do not want any more than our just share, but we feel that legis- 
lation has been a little bit against us. Certainly it has depressed our 
business in a great measure, so much so that it would be almost impos- 
sible for us to succeed financially. I am speaking of farmers in general. 

Mr. Tawney. You have mentioned hay and potatoes. You say that 
the sale of your hay has been very materially affected by the importa- 
tion of hay from Canada, and the sale of English potatoes in the Cuban 
market. What other farm products have been similarly affected since 
1894? 

Mr. Denise. Well, the duty has been taken off eggs and cabbage. 
Cabbage has been imported from Germany to the extent that it does 
not pay now for us to grow cabbage. The German cabbage seems to be 
superior to ours. Our agricultural interest is diversified outside of the 
potato interest. 

The Chairman. In the New York market the German cabbage has 
come in and has driven out the New Jersey cabbage? 



RECIPROCITY STATEMENTS. 283 

Mr. Denise. Yes, sir ; it comes into the ]Sew York market free of duty, 
and we can not compete with those people. 

Mr. TAWNEY. Then you did not comprehend my question as to whether 
the local demand is as great since 1894 as it Avas prior to that time? 

Mr. Denise. The local demand is not as great, I suppose, for the 
reason that the laboring people have no work, and can not buy our 
agricultural products. When a laborer has plenty of work and getting 
fair wages, he wastes almost as much as he consumes, and upon that 
ground I think that there is nothing like the quantity of agricultural 
products consumed now, for the reason that the people have not money 
enough with which to buy them. I think you gentlemen will see that 
point quite clearly. Take the city of Trenton, where you will see men 
standing around the streets by the thousands. They can not buy agri- 
cultural products, because they have no money with which to buy them, 
and they have no work. If the manufacturers are prosperous, it would 
help us greatly. The Cuban market would help us in our comity more 
than in any other county in the State. 

The CHAIRMAN. The other gentleman stated that you had been 
injured to the amount of a million dollars a year on potatoes. 

Mr. Schenck. About that. 

Mr. McLaurin. By reason of the duty imposed on potatoes'? 

Mr. Rhone. Yes, sir; by the closing up of the Cuban market. ^ 

The Chairman. There is a duty of $1.20 a barrel on our potatoes, 
which closes the market to us? 

Mr. Denise. Yes, sir. 

The Chairman. Under our reciprocity treaty with Spain our pota- 
toes went in free, and now that we have imposed a duty on sugar, Cuba 
imposed a duty on our potatoes, and the English potatoes go in free, 
while ours must pay $1.20 a barrel, so that it practically excludes the 
American potato ? 

Mr. Denise. Yes, sir. When the season opened I sold potatoes at 
$1.25 a barrel. We succeeded in shipping some into Cuba, paying the 
duty; but it is impossible to grow them at 65 cents a barrel. 

Mr. Tawney. The tariff imposed by Spain discriminates against the 
American potato in favor of the English to the extent of $1.20 a barrel? 

Mr. 1 )enise. Yes, sir; it virtually closes the Cuban market against us. 

Mr. McLaurin. You said something about sugar. They impose a 
duty on our potatoes because we impose a duty upon their sugar? 

Mr. Denise. Yes, sir; it is retaliation. 

The Chairman. The repeal of the reciprocity clause in the law of 
181)0, imposing a tariff on .sugar, was of course the cause? 

Mr. Denise. I think you gentlemen can readily see that any branch 
of industry where so much money is locked up and which brings in so 
little returns for the amount of labor can not stand this. 

Mr. Tawney. How was the price of land in New Jersey in 1892 and 
1893, as compared with the price of land there at the present time? 

Mr. Denise. At the present time it is almost impossible to sell land 
at any figure. I have in mind a piece of land sold two years ago by the 
sheriff at $38 an acre. It almost makes the farmer sick. Of course 
that was a forced sale. 

Mr. Tawney. Was there any demand for land in 1892? 

Mr. Denise. It sold then, but not as high as it had been selling. It 
had depreciated in value, and has been for a number of years; but 
within the past two years it dropped rapidly. 

Mr. McLaurin. What is the principal crop in Kew Jersey? 

Mr. Denise. The potato crop is the principal one; but we raise fruit, 
which is a large industry. 



284 RECIPROCITY STATEMENTS. 

Mr. McLattrin. How many crops do you raise per year? 

Mr. Denise. We only raise one on the same piece of ground. We 
fertilize and try to raise pretty large crops. That makes our agricul- 
tural industry very expensive — to have to fertilize so heavily. 

Mr. McLatjrin. Is there not some difference in the market price of 
your potatoes and the Southern potatoes'? 

Mr. Denise. The Southern potato does not affect our market. Theirs 
is gone before we go into the market. We come in just ahead of New 
York State. 

Mr. McLatjrin. Is there not some difference in the quality? 

Mr. Denise. The potato which we grow in Monmouth County is the 
poorest in quality which is grown, and yet it seems to be the one that 
sells the best. That seems rather strange, but it is the fact. The 
potato we want to raise is the one that will sell the best. It is a good- 
looking potato, but the quality is poor. As a farmer, I farm for dollars 
and cents, and if the market wants a certain kind I try to furnish it. 

The Chairman. I suppose that the condition in Monmouth County, 
N. J., is an index of the situation in the other counties of the State 
and of the agricultural interest on the Atlantic Seaboard? 

Mr. Denise. It is the same thing which exists all along the line. We 
submit facts as to our own county, because we are familiar with them. 
I have traveled through the State of New Jersey, and it seems to be 
the complaint everywhere. 

Mr. McLaurin. Do you raise any sweet potatoes? 

Mr. Denise. I do not; but they do raise some in the lower part of 
the State. 

Mr. McLaurin. Is there any duty on them ? 

Mr. Denise. I don't know about that. I am not prepared to say, as 
I do not grow any of them, and have not studied the question. 

The Chairman. You say the change in the tariff on potatoes, eggs, 
etc., has materially affected the farmers of New Jersey, and the Atlantic 
Coast? 

Mr. Denise. Very much. 

The Chairman. Where do those importations come from which come 
into New York and the other markets on the seaboard? 

Mr. Denise. In a great measure they come from Canada, and cab- 
bage comes principally from Germany. While for a few years the New 
York market has been affected with potatoes from Scotland and Ger- 
many, still, they can not now ship them. Vessels arrive with a few ; but 
they will not trouble us because the price is now so low. 

Mr. Schenck. Germany sends us eggs, as well as cabbage. 

Mr. Denise. Canada is a very large country. They have a small 
population and consume few agricultural products in proportion to their 
crop, which makes a great difference. 

The Chairman. The Canadians are exporters of all kinds of farm 
products? 

Mr. Denise. Yes, sir; and they do not consume much. They injure 
us very much. Their agricultural industries are now prosperous, while 
ours are not. 

Mr. Tawney. What is your position in the Grange? 

Mr. Denise. I am simply a member of the Grange. I am president 
of the New Jersey State Board of Agriculture, a farmers' institution, 
recognized by the government of the State of New Jersey. They have 
appointed us to come down here and present their claims in person. 

Mr. Schenck. I hope the committee recognize that we are principally 
interested in opening the Cuban market. It is a great loss to our 



RECIPROCITY STATEMENTS. 285 

county. The industry of shipping potatoes from New York to Cuba is 
a great one. 

The Chairman. You have found that the principle of reciprocity is 
one that works well, especially to your class of farmers? 

Mr. Schenck. It is very important. We must have the Cuban mar- 
ket. We soon clog the Americau market without the Cuban market. 
The Cuban market comes just in time for us. Our potatoes are shipped 
to Cuba and sold at an immense price. I think they sell from $5 to 
$5.50 per barrel. This is almost imperatively necessary to our existence 
as an agricultural district. We are at a loss to know what to do now, 
for the reason that our potatoes are not marketed at the proper time. 
When the Cuban market was open we had good prices, but now prices 
are constantly declining. 

Mr. Tawney. Can you give the committee an approximate idea as to 
the extent of the local demand for agricultural products in New Jersey, 
and how much they have dropped within the last few years'? 

Mr. Schenck. No, sir; I can not. I only know that the loss of the 
Cuban markets affected us so seriously that the price of agricultural 
products is so low that the market is destroyed, not only for this sec- 
tion, but for all others. 

Mr. Tawney. The local demand has increased during the last three 
years for agricultural products ? 

Mr. Schenck. I am not able to state positively as to that. Of course 
population is increasing. 

Mr. Tawney. The consumptive power of the people is not so great 
to-day as it wais four years ago? 

Mr. Schenck. I am not able to answer that. 

Mr. Tawney. They have not the same means of buying the agricul- 
tural products as they had two years ago? 

Mr. Schenck. Of course not. 

The Chairman. You agree that when the laborers have steady 
employment they have a greater purchasing power than when they are 
tramping and seeking employment*? 

Mr. Schenck. Undoubtedly. 

Mr. Tawney. That was the point ; whether local deman d h ad in creased ? 

Mr. Schenck. It has not; because the people have not had the money 
with which to buy. 

The Chairman. These facts will be presented to the full committee. 

Mr. Schenck. When we presented this matter to the board, it 
aroused the whole house, and they raised a subscription of $30 to have 
this resolution brought here and presented in person; and we are pleased 
with your kindness in granting this hearing. 



286 RECIPROCITY STATEMENTS. 



STATEMENT OF THE HON. JOHN D. CLARDY, A REPRESENTATIVE 
FROM THE STATE OF KENTUCKY. 

Mr. Chairman and Gentlemen : My object in coming before the 
committee is not to make any extended speech, but simply to make 
some statements upon a matter which has never been, so far as I know, 
presented in Congress before, simply for the reason that no representa- 
tive has been here, probably, who was sufficiently familiar with the 
subject to present it, or who thought it of sufficient importance ; but for 
several States it is a matter of very great importance. The subject is 
the introduction of American tobacco into foreign countries. 

England and Germany are really the only countries now which are 
freely open to the reception of tobacco shipped by dealers in or manufac- 
turers or producers of tobacco in this country. Germany and England 
are open markets. They allow the tobacco to come in freely, and allow 
the shipper to sell there. England puts a large tariff on tobacco — 76 
cents a pound — but still England, notwithstanding this enormous tariff, 
is the best market we have for a large proportion of tobacco which we 
raise for export. All the strips that are made — I will explain that the 
word " strips" simply means the leaf with the stem taken out, and it is 
known in Kentucky as strips. Probably Kentucky makes nine-tenths 
of the strips made in the United States; some are made in Virginia, 
and probably a few in Maryland, but Kentucky and Tennessee largely 
supply these strips. Now, the other countries — France, Spain, Italy, 
etc. — buy their tobacco through what is called "regie" contracts. 

As that matter, probably, is not generally understood, I will explain 
that " regie" is a contract made by a Government, " regie" represent- 
ing the Government, authority being derived from "rex," a king. 
These contracts are purely Government monopolies. All these coun- 
tries which buy through these agents hold the tobacco as a Govern- 
ment monopoly. They make a contract with certain individuals or firms 
generally located in New York to furnish them so much tobacco, and 
the three grades of A, B, and C are the grades usually furnished. 
They furnish A at such a price, and B at such a price, and C at such a 
price. This is the only outlet for this tobacco. It is made for export, 
and there is a large surplus which can not be used in this country. It 
has to seek this particular market because there is no other outlet for 
it, and the consequence is the men who get these contracts sit right 
down in New York and of course work for their own interests. 

Now, having agreed to furnish this tobacco to these countries at a 
stipulated price, they fix a price on our product and arrange to buy our 
tobacco at a price which is now absolutely below the cost of production, 
as Mr. McMillin there very well knows, as he is acquainted somewhat 
with the tobacco trade of Tennessee, Now, the object of the am end v 



RECIPROCITY STATEMENTS. 287 

merit which I introduced and which was carried in the House and 
embodied in the agricultural appropriation bill was simply this, that 
through negotiations with these countries, through a system known as 
reciprocity, or whatever name you may call it, to see if possibly these 
countries can not be induced to allow our tobacco to seek an open 
market in these countries. 

EVERYWHERE A GOVERNMENT MONOPOLY. 

The CnATRMAN. Let me interrupt you there. Do you say there is*' 
no open market for tobacco in any of the countries of Europe except 
Germany and England'? 

Mr. Olardy. That is all, except a few minor countries where very 
little is used. 

The Chairman. And they are purely Government monopolies in all 
other countries'? 

Mr. Olardy. Pure monopolies. I have some statistics which I 
embodied in my speech when I introduced this resolution in order that 
you may understand the importance of this matter in these States. 
You will understand we raise in Kentucky two distinct varieties of 
tobacco; one the Burley tobacco, which is a domestic product and used 
for manufacture at home. It is necessary for me to make this explana- 
tion because a good many of you gentlemen are not acquainted with 
this trade and I have been occupied all my life in making, selling, buy- 
ing, and trading in it, and consequently I feel competent to speak upon 
the subject. 

The Burley tobacco is mostly used at home, and the competition at 
home for manufacturing purposes makes that tobacco bring much higher 
prices than the other. It can only be raised in a limited area of country, 
including thebiue-grass sectionsof Kentucky and a small section in Ohio. 
It originated in Brown County, Ohio, quite a number of years ago. 
Then, there is another tobacco, called the dark or shipping tobacco, a 
heavy tobacco, much stronger in ambeer, to use a common expression, 
and this tobacco is only used to a limited extent in this country; the 
larger portion of it has to seek a market in foreign countries. " Strips" 
are mostly sent to England, which is an open market. The heavy, dark, 
richest tobacco we have goes to Germany, which is also an open market, 
and those are the only two countries that are open. Of course, some is 
sent to Africa and some of the minor countries, but I mean the principal 
commercial countries. 

I talked with Senators when that amendment was before the Senate, 
as they did not understand what it meant, and I had to explain what 
it was before they would permit it to remain in the bill. They did not 
know what it meant. They did not know tobacco was excluded from 
those countries and not 'allowed to be sold in the open market as other 
farm products are sold. Now, take France, for instance. France buys 
from Kentucky and other places. I will read you these statistics in 
order to show what an enormous product this thing is. Here is Ken- 
tucky tobacco raised in one year — I stated that it was 1895, but the 
tobacco was raised in 1894 and the sales made in 1895: At Louisville 
there were sold 174,885 hogsheads of tobacco; there are 1,400 pounds to 
each hogshead. The Kentucky tobacco sold at Cincinnati was 30,000 
hogsheads; tobacco sold at Hopkinsville, 15,000 hogsheads; at Clarks- 
ville, Kentucky tobacco sold, 15,000 hogsheads; at Paducah, 12,000 
hogshead; at Mayfield, 5,000 hogsheads. Tobacco bought loose and 
not resold in any of these markets, 20,000 hogsheads. 



288 RECIPROCITY STATEMENTS. 

Now, this is exclusive of at least 4,000,000 to 6,000,000 pounds of 
tobacco, probably more than that, of strips made at Owensboro and 
Henderson and sent to England as Kentucky tobacco, that is not 
included in this estimate, making 271,000,000 pounds of tobacco raised 
in Kentucky alone, but you will remember that Kentucky raises just 
about half the tobacco raised in the United States. I would state that 
this is a very important matter. If we had an open market in France, 
for instance, and Italy and Spain, where they use all this tobacco, you 
will see at once what an enormous advantage it would be to the pro- 
.ducers of tobacco. It being a pure monopoly, they fix the number of 
hogsheads they will take, and of course we have generally more than 
enough to supply this demand, and the consequence is they can fix the 
price at anything they choose, for the reason that this tobacco finds a 
market only in those particular countries. 

Mr. McMillin. I believe it comes in part, if I remember the investi- 
gation I made a good while ago, from the fact that in France and some 
other countries you mentioned they gain an enormous revenue from 
that? 

Mr. Clardy. I am coining to that in a moment. 

Mr. McMillin. And they, having a monopoly of not only the pur- 
chase, but the sale, can control the sale*? 

THE TOBACCO TRADE WITH FRANCE. 

Mr. Olardy. I am coming to that. Take France, for instance $ she 
buys, say, $10,000,000 worth of tobacco from Kentucky and these other 
States. 

The Chairman. That is, the Government authorities do 1 

Mr. Clardy. Yes, sir. They receive it, and it is sold by Government 
officials. Nobody is permitted to sell any tobacco in France except 
Government officials, and it is sold as Government tobacco. Now, 
listen ; they sell this tobacco at from 200 to 800 per cent over what they 
pay for it. They make a clear profit on that $8,000,000 or $10,000,000 
worth of tobacco which they buy of from $65,000,000 to $70,000,000. 
Just think of that. They take that from the producers of this country, 
which ought partly at least to go into the pockets of the people who 
raise this product; France alone actually makes a revenue of over 
$60,000,000 a year upon the tobacco she buys here under these regie 
contracts. Italy also buys a large amount of tobacco. 

Mr. McLaurin. What is the date of your record 1 ? I am much inter- 
ested in that. 

Mr. Clardy. It is the 15th of February. I can give you a copy of 
my speech printed in one of my home papers, and I would be glad to 
give one to each of you gentlemen. It is a little fulsome in there [illus- 
trating], but I suppose it did not do me any harm in my district. 

Now, France takes annually 10,000 hogsheads. Italy is also one of 
the largest purchasers, and takes 18,000 hogsheads of this regie tobacco. 
Spain takes 16,000 hogsheads, and Hungary and Austria annually 
about 6,000 hogsheads. Now, the difference in Austria and Hungary is 
this: They buy through their consuls, but still it is a monopoly; but in 
those cases the consuls make the contracts, whereas in the other coun- 
tries they are made through the regie contractors. Now in regard to 
the advantages this would be to purchasers. Suppose, by offering 
France and these other countries some favors, some facilities for their 
own products, we induce them to allow our tobacco an open market. 
Now, it does seem to me the most important thing for the people of this 



RECIPROCITY STATEMENTS. 289 

country this Congress can do for the farmers of this country is to open 
as far as may be the markets available to them for their surplus tobacco 
product. Now, as a farmer — and pretty much everything I have is 
invested in farming — I do not believe that the farmer can be protected 
in surplus products like wheat, tobacco, and cotton by even a bounty. 
I do not believe that is a right way to do it; but I believe the better 
way is, as far as may be, to open up the avenues of commerce as far as 
it is possible to do so, and give us free access to those countries. 

We do not need any help in making this tobacco if we had a free open 
place to sell it; but when we are shut off, and these Governments under- 
take to say, " We will buy only so much of your tobacco, and we Avill 
take that tobacco and sell it as a Government monopoly and make a 
profit on it," at least a part of it ought to go to the producer. 

The Chairman. Do I understand that you, as a producer of tobacco 
in Kentucky, could not consign a million pounds of tobacco to yourself 
direct in France and then have the privilege of selling it in the markets 
of France? 

Mr. Olardy. You can not sell a pound of it. Nobody can sell in 
Fiance, or any of those countries, except through a Government official. 
It is all regulated by their revenue system. You can not even raise 
tobacco in France and sell it unless it goes into the hands of the 
Government. 

Mr. McMillin. Not only that, but, if I remember correctly, this 
further difficulty stands in the way — that that is a privilege that is 
given in two ways. First, it is sold like our privilege of dealing in 
spirits b}^ way of license, and in the second place, it was formerly given 
in lieu of bounties or pensions to maimed soldiers in France. 

OTHER GOVERNMENT MONOPOLIES. 

Mr. Clardy\ That may be the case in some countries, but I under- 
stand France does it only through the Government officials, and it is 
done as a Government monopoly and the Government officers control 
the whole thing. 

The Chairman. Tobacco is largely used in Bussia? 

Mr. Olardy. They buy it through their consuls — Austria, Hungary, 
and Russia. 

The Chairman. The monopoly is the same? 

Mr. Clardy. Yes, sir. 

The Chairman. How is it in Turkey? 

Mr. Clardy. They do not use much of our tobacco there. They 
raise their tobacco, and what little they buy they get through the 
German market. 

The Chairman. Is there any trade in China and Japan in American 
tobacco'/ 

Mr. Clardy. Yery little. 

The Chairman. Is there any restriction by those Governments'? 

Mr. Clardy^. None that I know of. These principal markets, which 
take a large surplus of our tobacco, are the ones we desire you gentle- 
men, if possible, to do something to open. 

The Chairman. I understand you to say in selling upon the open 
market England has a customs duty of 7G cents a pound! 

Mr. Clardy. Yes. I will explain why we take the stems out of the 

tobacco. You understand the stems constitute a considerable portion 

of the weight. We pull out the steins so as to only have the absolute 

weight of the leaf. These strips go to England, and a good many get 

H. Eep. 2263 19 



290 RECIPROCITY STATEMENTS. 

out on the Continent through England, and when they go to England 
they go into a bonded warehouse like our whisky does, but the seller 
of tobacco here never hears anything about the tariff on' it in England. 
The market is quoted to him at so many pence per pound, and in our 
dealings with England we never have a bill of lading or anything that 
makes a recital of the tariff we have to pay. We sell the tobacco in 
the bonded warehouse, and when a man takes it out for use he pays the 
duty. 

The Chairman. You ship to England, and put it in a bonded ware- 
house, and the person who buys it then has to pay the tariff? 

Mr. Clardy. The man who takes it out pays the duty. 

The Chairman. You get that much less, however, for the tobacco? 

Mr. Clardy. That is doubtless partly true. Now, for instance, the 
average price of these strips which go to England does not exceed 
probably 7 cents a pound in our currency here; that would be 3Jd. in 
England. You see how much they make. They get 76 cents for every 
pound that is bought here at 7 cents. 

DUTY ON TOBACCO IN ENGLAND. 

The Chairman. That is, a pound of leaf tobacco that would sell in 
the market here for 7 cents a pound before it can be sold in the Euglish 
market must pay a duty to the English custom-house officers of 76 
cents ? 

Mr. Clardy. Yes, sir. 

The Chairman. That is a pretty high duty? 

Mr. Clardy. That is enormous. 

Mr. McMillin. Allow me to say at this point, I am more familiar 
with France, but I think an analogous situation prevails elsewhere. 
They put an internal tax on it, and in France if a man wants to raise 
tobacco they gauge his patch under governmental supervision; they 
count the plants and charge up so many plants as capable of producing 
such a weight of tobacco, and then he pays a tax on the capacity of his 
patch just like we pay a tax here on the capacity of a distillery, and it 
is an internal tax and they derive a great revenue from this source, and 
that is the way it is obtained. 

Mr. Clardy. But no matter whether it is raised in France, you can 
not ship in there except through the contractors and they ship to the 
Government; it is sent under contract to the Government, and it is all 
controlled and sold by the Government. These are the conditions and 
troubles we are in in regard to tobacco. Now, as to the effect it would 
have upon the producer, if we had an open market, suppose you 
gentlemen, by act of Congress, or act of committee, or act of the Agri- 
cultural Department, give those countries some advantage. Of course 
we have got to do this in a friendly way. France has the right to raise 
revenues like every other country, but if we make it to her interest to 
let our products into a free market in that country, do you not see what 
effect it will have upon the market here. I suppose we can sell twice 
as much tobacco, probably two or three or four times as much, and they 
can buy it at a fourth of what they pay now, and we get doubly what 
we are paid now by having an open market and selling directly as we 
allow them to sell their goods here. Now, why should this country 
continue to rest under this sort of arrangement with other countries 
permitting their goods to come here, they paying a tariff, that may be 
all right, but we let their goods sell upon the open market and yet they 
will not permit us to sell a single pound of tobacco in their country 



RECIPROCITY STATEMENTS. 291 

except by entering into a Government contract, which is an absolute, 
unadulterated monopoly. 

Mr. McLaurin. Now, if this is such a source of revenue to France, 
would she be likely to let this source of revenue go? 

Mr. Olardy. Let her put a tax on it. England has put an enormous 
tax on it and still is the greatest outlet our tobacco has, as my friend 
(Mr. Evans) from Kentucky knows very well. We have made as much 
as 17,000,000 pounds in my own county, and you see what a big thing- 
it is to our people. 

Now, gentlemen, I shall be glad to answer any questions you may 1 
desire to ask about this matter. You see the real gist of the matter? 
The object is to get this market open, and if we can offer them some 
sort of an arrangement or inducement that will satisfy them it is better 
for them to let our tobacco in the open market, I think you will have 
done a greater good to the agricultural people who raise tobacco than 
ever has been done in all the legislation that has been enacted in this 
Congress for the past twenty years. 

The Chairman. What States are interested in this? 

Mr. Clardy. Well, largely Kentucky more than any other State, but 
also Tennessee, Maryland, and Virginia. I believe those are the only 
States. It would incidentally benefit the whole tobacco trade by 
enlarging the demand. 

The Chairman. What about Wisconsin ? 

Mr. Clardy. Wisconsin does not raise the kind of tobacco they 
want. They raise cigar tobacco. 

The Chairman. This is chewing and smoking tobacco? 

Mr. Clardy. This is known in the trade as shipping-leaf tobacco, 
which is a heavy, tough, black tobacco ; and that is what they want so 
much in those countries where they manufacture it, in Germany, and 
some in France. They have a lighter description of tobacco raised in 
Turkey and some in Germany and France, but they have got to have 
this strong black tobacco of ours to mix with it, to give it body and 
strength, to make it strong. 

The Chairman. You have given us a very interesting statement, 
Doctor. 

Mr. Clardy. Now, if there is anything else you wish to know I will 
be glad to give it to you. You know I might talk on this for any length 
of time, but I do not desire to bore you gentlemen or detain the com- 
mittee. 

The Chairman. Do you think of anything further? 

Mr. Clardy. I am anxious to get something done for the improve- 
ment of our people, if possible, in this direction. It will raise the 
price of tobacco in the open market and would raise the price at home. 
If it could be that a dealer in tobacco could ship and sell in the open 
market it would almost double the price of tobacco at once in our 
country. I hope you gentlemen will be kind enough, if you can do any- 
thing in that direction, that you will do so. I am very much obliged 
to you for your kindness in allowing me to make this presentation. 

The Chairman. It has been very pleasant to hear you. 



APPENDIX J. 



REPLIES TO THE INQUIRIES OF THE COMMITTEE ON WAYS 

AND MEANS FROM THE MANUFACTURERS AND 

MERCHANTS OF THE UNITED STATES. 



293 



MANUFACTURERS 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, I). 0., March 4, 1896. 
Sir: In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of flrm*or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed ? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would tbe removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago I 

11. How does the present cost of production compare with that of 
six years ago; including, wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

295 



296 RECIPROCITY STATEMENTS. 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity ! (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Representatives ; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



EEPLIES— GENERAL. 

National Association of Manufacturers of the United States of America. 

Philadelphia, Pa., March 19, 1896. 

Dear Sir : Speaking for the widely diversified interests represented 
by the National Association of Manufacturers, I desire to present briefly 
a few arguments bearing upon the advantages of reciprocity as a gen- 
eral principle in international trade. My view of this matter is taken 
from a purely business standpoint, without regard to any political con- 
siderations, for there is probably no feature of our tariff system, past 
or present, that has come so near as reciprocity to being a purely busi- 
ness matter. To this fact may be attributed the enthusiastic support 
which the principles of reciprocity have received from men of widely 
differing political views. 

The treaties of commercial reciprocity which were negotiated under 
the act of 1890 were based upon the very simple principle of demanding 
something in return for that which we had to give. We had a market 
in this country for certain commodities which were produced in the 
West Indies, in Central America, and in South America, but we were 
not dependent solely upon those sources of supply. On the other hand, 
those countries had need of many products of our agriculture and indus- 
try, but we could claim no monopoly of the supply of these articles. 
The treaties of commercial reciprocity which were negotiated under the 



RECIPROCITY STATEMENTS. 297 

customs law of 1890 simply secured the admission of our products to 
the southern countries more freely, without making any sacrifice of our 
own home markets. This was accomplished, not by making' further con- 
cessions to those countries, but by demanding from them the granting 
of privileges in return for the advantages which they had long enjoyed 
in our own markets. 

It requires but a glance at the conditions under which the treaties of 
commercial reciprocity were negotiated to reveal how much was gained 
by this country and how little was given in return. By permitting the 
continuance upon the free list of three commodities upon which duties 
had not been imposed for many years, and by conditionally placing two 
additional items upon our free list, concessions were obtained from a 
dozen foreign countries which either wholly removed or largely reduced 
the duties imposed by those nations on over 2,000 articles of American 
production or manufacture. Tea, coffee, and hides were already on the 
free list — had been there since 1873 — and the duty was removed from 
sugar and molasses by the act of 1890. The very simple provisions of 
the reciprocity clause of this act authorized the imposition of duties 
upon all of these commodities when imported from countries to which 
American goods could not enter as freely as the goods of other nations. 
It was not by the extension of the free list of our customs law that 
favors were obtained from other nations; it was by the threat of the 
imposition of duties upon the products of countries which discriminated 
against us that American merchants were secured equal rights with 
their competitors in foreign markets. 

This was at once an act of justice and a good stroke of business. 
We were buying annually from Brazil from $50,000,000 to $60,000,000 
worth of merchandise, the larger part of which was coffee, upon which 
no duty had been charged since 1873, although Brazil imx^osed onerous 
customs dues upon the principal articles of exj)ort from the United 
States, with the result that the shipment of American goods to Brazil 
amounted in 1890 to only $11,972,214, or less than one-fifth of the value 
of our inrports from Brazil. The demand that Brazil should reduce the 
duties on American products, under penalty of the imposition of a duty 
of 3 cents per pound on coffee, was fully justified upon business grounds 
if by no other reason. The effect of the more favorable conditions 
which followed the negotiation of a reciprocal treaty were a still greater 
justification of the demand that had been made, for there was an imme- 
diate increase in the trade between the United States and Brazil. 

The new treaty with Brazil, which went into operation on April 1, 
1891, placed wheat, corn, flour, cotton -seed oil, coal, machinery, tools, 
railway materials, and many other articles upon the Brazilian free list, 
while a reduction of 25 per cent was made in the duties imposed upon 
lard, bacon, hams, canned goods, leather goods, lumber and manufac- 
tures of wood, and several other articles. The effect upon our trade 
with that country was felt at once. The following statement shows our 
exports of flour to Brazil during six fiscal years — two years prior to 
the negotiation of the reciprocal treaty, three years during the oper- 
ation of that treaty, and one year after its repeal : 



Tears. 


Barrels. 


Values. 


1890 


687, 342 
722, 369 
918,547 
837, 03!) 
920, 869 
775, 425 


$3, 304, 990 
3,838,919 
4, 972. 539 
3, 647, 251 
3, 538, 871 
2, 683, 948 


1891 


1892 


1 893 . 


1894 




1895 







298 RECIPROCITY STATEMENTS. 

It is in our dealings with Cuba, however, that the benefits of reci- 
procity have been most strikingly shown. Sugar, which formed the 
largest item in our imports from Cuba, was placed upon the free list 
by the tariff act of 1890, but its free entry was made conditional upon 
the reasonable treatment of American products in those countries from 
which sugar was imported into the United States. There was reserved 
the privilege of imposing duties at about one-half the former rates upon 
sugar and molasses when imported from countries which discriminated 
against the United States in their customs laws. Under normal trade 
conditions Cuba would have looked to the United States for her supply 
of breaclstuffs, provisions, and in fact everything needed that could not 
be produced at home; but in order to control the trade of her AYest 
India colonies Spain imposed a duty of nearly $5.50 per barrel upon 
American flour, or considerably more than the flour was worth at the 
port of shipment in this country. Under the reciprocity treaty which 
Secretary Blaine negotiated watfe Spain and which went into effect on 
September 1, 1891, the duty on flour was reduced to $1 per 220 pounds; 
large reductions were made in the duties on other breadstuff's, the 
duties on fifteen leading commodities were reduced one-half, and about 
forty items were added to the free list. 

The more favorable conditions created by this treaty gave an imme- 
diate impetus to our trade with Cuba, the extent of which is strikingly 
shown by the following statement of our exports to and imports from 
Cuba during the five fiscal years given below: 



Tears. 


Exports. 


Imports. 


1890 


$13, 084, 415 
12, 224, 888 
17, 953, 570 
24, 157, 698 
20, 125, 321 


$53, 801, 591 


1891 


61,714,395 


1892 


77,931,671 


1893 


78, 706, 506 
75, 678, 261 


1894 







During the ten years preceding the tariff act of 1890 our exports to 
Cuba remained practically stationary; in fact, there was a decline of 
about $1,000,000 in that period, while our imports from Cuba during 
the same ten years decreased over $10,000,000. But under three years 
of reciprocity our trade with Cuba reached the highest point ever 
touched, showing an increase of $8,000,000 in exports and $14,000,000 
in imports. 

To take a single item from our trade with Cuba, flour, shows how 
sharply the influence of the reciprocity treaty was felt. The exports of 
flour from the United States to Cuba, which amounted to 114,447 barrels 
in the fiscal year ended June 30, 1891, increased to 366,175 barrels in 
1892 — the first year during which the reciprocity treaty was in opera- 
tion—to 616,406 barrels in 1893, and 662,248 barrels in 1894, the last 
year of the treaty of reciprocity with Spain. Upon the passage of the 
customs law of 1894, which compelled the abrogation of this treaty, 
Spain immediately retaliated by increasing the duty on flour from $1 to 
$4.75 per 220 pounds, with the result that the exports of American 
flour to Cuba fell to 379,856 barrels in the fiscal year ended June 30, 
1895. So great was the outcry of the Cubans against the enormous 
duty on American flour that the Spanish Government was forced to 
reduce the rate from $4.75 to $4 per 220 pounds, still four times the duty 
charged under the reciprocity treaty. 

I wish to give particular emphasis to the importance of our relations 



RECIPROCITY STATEMENTS. 299 

with Cuba under the reciprocity treat}', because that island is our 
nearest and best customer to the southward. Not only has the abroga- 
tion of the reciprocity treaty caused great direct loss to this country, 
but it has imposed great hardship upon the people of Cuba. With the 
advantages enjoyed under reciprocity the United States was assured 
the practical control of the Cuban trade, and the conditions were 
equally satisfactory to the people of Cuba and this country. When 
Senator Washburn, of Minnesota, went down to Havana for a week in 
the early part of 1894 he found abundant evidence of the satisfactory 
workings of the treaty then in force. Speaking about what he saw. 
Senator Washburn said: 

In conversation with American merchants and others doing business in Cuba, I 
learned that the effects of the commercial relations created by this arrangement had 
been really remarkable, and were increasing in importance and magnitude day by 
day. The Americans doing business there are more than satisfied with the results. 
The Cubans are satisfied, and everyone is satisiied excepting Spain itself and the 
representatives of Germany, France, and other continental countries, who see the 
trade of the island gradually slipping away from them and finding themselves sup- 
planted by the products of the American farmer and the wares of the American 
workshop. 

For another view of the commercial relations between Cuba and the 
United States, let me present these few lines from a memorial presented 
to the Spanish Parliament by the sugar manufacturers and planters 
in Cuba on September 30, 1894, one month after the Wilson bill had 
become a law: 

Upon the derogation of the reciprocity treaty with the United States, the monstrous 
tariff of the year 1892 was unmercifully renewed and applied to the imports from all 
foreign countries, one of the first effects having been to increase the price of pro- 
visions imported from the United States, thereby raising the expense of living on 
this people, besides increasing the cost, almost to the point of prohibition, of the 
importation of machinery and other products of foreign countries essential to the 
preservation and development of its industries, the effects of which are shown in 
the increased cost of production and in abandonment of necessary repairs. 

It is not necessary to rehearse the conditions under which reciprocity 
treaties were negotiated with other countries, nor need I show what they 
accomplished or how their abrogation has injured our foreign trade. I 
desire to point out only a few specific reasons for such legislative enact- 
ments as will permit the restoration of treaties of commercial reciprocity 
with those nations with which they were established under the act of 
1800, and the negotiation of similar treaties with other countries with 
which more freedom in our trade relations is desirable. 

(1) To business men who have given the subject careful consideration 
reciprocity commends itself as a sound and judicious business principle. 

(2) As applied under the act of 1890, reciprocity was a thoroughly 
American principle, inasmuch as it provided for the protection of our 
commercial interests, not only at home but abroad. 

(3) As a principle that has been earnestly advocated by both Bepub- 
licans and Democrats, reciprocity ought to be considered upon a strictly 
nonpartisan, nonpolitical basis. 

(1) The practical application of reciprocity under the provisions of 
the act of 1890 demonstrated beyond question the ability of such treaties 
to extend and enlarge our foreign trade under exceedingly favorable 
conditions. 

(5) Apart from those results which can be measured in money values, 
the reciprocity treaties rendered valuable servicein effecting more cordial 
relations between the United States and other nations. 

(6) From a protectionist standpoint, reciprocity is not open to objec- 
tions, as it involves no sacrifice of the principles of protection. The 



300 RECIPROCITY STATEMENTS. 

treaties which were negotiated under the act of 1890 added nothing to 
the free list that had not already been placed there by the law itself. 

(7) Those who advocate free trade ought not to object to reciprocal 
commercial treaties, as their whole effect is to lessen the restrictions 
upon international trade. 

(8) Treaties of commercial reciprocity with other nations, particu- 
larly the Latin- American countries, are necessary as a matter of self- 
protection, for treaties of this character are being or have been nego- 
tiated between European Governments and nations to the south of us 
to the detriment of our commercial interests abroad. 

In behalf of the enormous industrial interests represented by this 
association, I desire to urge with all possible emphasis the necessity 
for such treaty relations with foreign nations as shall insure the utmost 
possible favor to American products in the markets of the world. 
Yery respectfully yours, 

Theodore C. Search, 
President National Association of Manufacturers. 
Hon. A. J. Hopkins, 

Chairman Subcommittee on Reciprocity and Commercial Treaties, 



Louisville and Nasliville Railroad Company, St. Louis, Mo. 

Our records show that, from the establishment of our line of steamers, 
December, 1893, from Pensacola, Fla , to Havana, Cuba, until the with- 
drawal of the reciprocity relations with Cuba, August, 1894, we handled 
from St. Louis as follows : 

Tons. 

Flour (177,334 sacks) 17,733 

Com (218,787 sacks) 24,066 

Oats (12,498 sacks) 1,000 

Bran (7,231 sacks) 578 

Hay (14,909 bales) 800 

Total (twenty months) 44,177 

Since that time to date we have handled: 

Tons. 

Flour (43,761 sacks) 4,376 

Bran (4,894 sacks) 391 

Corn (4,828 sacks) 531 

Hay (9,344 bales) 234 

Total (nineteen months) 5, 532 

The shipments of flour since the Pensacola route was opened have 
been made by Plant Milling Company, Kauffman Milling Company, J. 
F. Imbs & Co., Kehlor Bros., St. Louis Victoria Milling Company, Camp 
Spring Milling Company, and E. O. Stanard Milling Company. 

The grain and bran shipments by Block, Dean & Co. and Connor 
Bros. & Co. 

The hay shipments by G. W. Smith & Co. 

The shipments of other articles have not been very heavy, consisting 
of coffins from St. Louis Coffin Company, barber chairs from the Koken 
Barber Supply Company, iron pipe and castings from L. M. Eumsey 
Manufacturing Comi>any, office desks from the Western Furniture Com- 
pany, stoves from the Excelsior Manufacturing Company. At times 
there has been a movement of mules from this market to Havana via 
the Cairo Short Line to New Orleans and Morgan Line, routing of 
which being controlled by New Orleans parties. 



RECIPROCITY STATEMENTS. 301 

Palmer, Smith & Co., Newark, N. J. 

In answer to your inquiry I would say that the effect of the reciproc- 
ity treaties negotiated by the last Administration upon our trade was 
favorable 1 beyond question, and that their repeal was most disastrous. 
We are decidedly in favor of the application of the reciprocity princi- 
ple to all future tariff legislation by Congress, and my opinion, based 
upon contact with merchants in other countries, is that our export trade 
would be vastly increased thereby. 

I am in favor of a gold standard; of building up our merchant* 
marine w^ith free ships; of abrogating the duty on all raw material, 
and of taking the tariff question out of politics, and placing it in the 
hands of a standing commission. 



Cone Export and Commission Company, New York. 

Keferring to the enormous losses which the trade of the United States 
has suffered by the abrogation of the reciprocity treaty with Brazil 
and other countries, I wish to give you one illustration, for the truth of 
which I can vouch, and that is that this company exported to Brazil 
in 1894 about $200,000 worth of cotton goods, and during 1895 (since 
the treaty was abrogated) we have only shipped $35,000 worth. Had 
the treaty remained in force I am sure that we would have shipped at 
least $400,000 worth of goods in 1895, because our goods were only 
introduced into Brazil in 1894 and the demand would have increased 
as they became better known to the consumers. I authorize you to 
make whatever use of this letter that you may think beneficial. 



Chicago and Alton Railroad Company. 

To the first question we should state that we think the reciprocity 
arrangements under the tariff act of 1890 were favorable to this coun- 
try. It seems to me, however, that it would not be advisable to enact 
a general law without limiting it to a certain extent. It would seem 
that a great deal could be accomplished by diplomatic negotiations in 
extending the export trade of the United States, if the representatives 
of this Government abroad would interest themselves in the matter. 



Central and South American Telegraph Company, New York. 

I observe in the daily press that your committee desires practical 
information concerning the obstacles in the tariff or customs regula- 
tions of foreign countries tending to retard the extension of our export 
trade. 

Although the subject 1 address you on is not strictly within the scope 
of the reciprocity treaties referred to, it is within the most-favored- 
nation clause under other treaties, and pertains to a subject affecting 
most seriously American commerce. 

I write you respecting foreign cable monopolies, particularly those of 
English and French cable companies. The records of the State Depart- 



302 RECIPROCITY STATEMENTS. 

ment from the time of William H. Seward clown to the present will show 
that the policy of the United States Government has been to require 
reciprocal landing rights; that is to say, any foreign company holding 
an exclusive right in a foreign country is prohibited landing its cable 
on the coast of the United States until such foreign country extends a 
like privilege to an American company. 

In the year 1890 the Brazilian Government granted to a French cable 
company the exclusive right for landing a cable on the north coast of 
Brazil for sixty years. This cable was to be laid to the United States 
coast via the West India Islands. The French company has for years 
endeavored to obtain landing rights, direct and indirect, from State 
and the National Government. Recently that company without author- 
ity has landed a cable off Coney Island with the intention of extending 
it to the West Indies in order to connect with its cable holding exclusive 
rights in Venezuela and Brazil. In this connection I call your atten- 
tion to Ex. Doc. No. 51, Forty-eighth Congress, second session, Jan- 
uary 27, 1885, entitled "Message from the President of the United 
►States, transmitting, in response to Senate resolution of May 2, 1884, a 
report of the Secretary of State in relation to the landing of foreign 
cables on the shores of the United States." 

Also to Ex. Doc. No. 122, Forty-ninth Congress, " Message from the 
President of the United States, transmitting report of the Secretary of 
State relative to the relations of certain telegraph and cable companies." 

This, the Central and South American Telegraph Company (an Amer- 
ican company), of which I am president, has for years been endeavoring 
to obtain from Brazil a landing right in order that it might extend its 
lines beyond its present terminus, Buenos Ayres, Argentina, to Rio cle 
Janeiro, Brazil, but owing to the exclusive rights held by the Western 
and Brazilian Telegraph Company, an English corporation operating 
the cables on the coast of Brazil, our efforts have been frustrated. One 
of the results of these monopolies is that the Western and Brazilian 
Telegraph Company referred to makes a discriminating charge against 
United States messages in the following manner: The local rate 
between Buenos Ayres, Argentina, and, say, Rio de Janeiro, Brazil, is 
40 cents a word; that is the rate charged on all messages between Peru, 
Chile, Argentina, and Brazil, while on American messages the rate is 
91 cents a word, the 51 cents discrimination being enforced so as to 
oblige all United States messages to be routed from New York to Brazil 
via London, Lisbon, and Pernambuco. 

Telegraphy is held to be commerce, and as these exclusive rights of 
foreign cable companies most seriously injure American commerce, it 
would seem advisable that the policy heretofore pursued by our Gov- 
ernment, declining to grant landing rights to foreign companies holding 
exclusive rights from foreign countries, be affirmed and recognized as 
the permanent policy of the United States Government. 

Furthermore, that the efforts of our Government should be actively 
directed to obtain for American telegraph and cable companies equality 
of landing rights. 



Kingsland & Douglas Manufacturing Company, St. Louis, Mo. 

First. Reciprocity is an essential feature to the successful control of 
foreign trade. 

Second. The effect of the repeal by the tariff act of 1891 has been 
exceedingly detrimental to our business by curtailing our sales, and has 



RECIPROCITY STATEMENTS. 303 

discouraged us iu our efforts to pursue the advantages we bad under 
the reciprocity act. 

Third. I think it decidedly advisable to apply the reciprocity principle 
to future tariff legislation, and to enact a general law authorizing the 
President to negotiate reciprocity treaties with foreign nations. 

Fourth. By diplomatic negotiations, there is not the slightest doubt 
but that all the Latin- American States can be induced to seek the 
market of the United States for their wants instead of, as is now 
largely the case, going to Europe. 

From personal observation, 1 know the ^Republics south of us are' 
anxious, willing, and waiting for us to reach out the commercial hand 
of welcome inviting their trade. As has been expressed to me by a 
great many parties living in our sister Republics, Europe has dominated 
them to such an extent that it has become burdensome, and an earnest 
effort on the part of the United States to capture the trade there can 
not but result successfully. 

I say all this based on the experience of fifteen years intercourse 
with Latin-America, and I further say it as a Democrat. But reciproc- 
ity is not a political question. It is emphatically a commercial one, 
and should be so treated by both parties. 

I sincerely hope you will be able to establish reciprocity on a basis 
that no administration, of whatever political belief, can shake or affect 
in any way. 



Henry T. Oxnard, Grand Island, Nebr. 

I beg to call your attention to one point, and that is that in dealing 
with sugar-producing countries in the McKinley bill sugar was on the 
free list, and the duty on sugar was restored to those countries not 
accepting reciprocity. To-day we have a duty of 40 per cent on sugar — 
about 1 cent. Now, in reciprocity arrangements (unless you give us a 
bounty) the sugar duty should be increased to those countries refusing 
our terms. For instance, if you were to let in sugar free from Cuba 
in order to get them to admit our flour, you would kill the American 
sugar industry in order to help the American flour mills. If the duty 
on sugar was doubled on Cuba or Germany they would make any con- 
cessions not to have their sugar discriminated against, and the beet- 
sugar industry at home would not be injured. I shall be in Washington 
to see you on this subject next month. 



Farley, Harvey & Co., Boston. 

We are not manufacturers, and only to a limited extent exporters, 
and the questions, in the main, are not pertinent to our business. On 
general principles we answer No. 20 "Yes." 



T. J. Wrampelmeier, San Francisco. 

As I am not at present actively engaged in the export trade, my 
answers to the questions would be of no use. I will take the liberty 
to say, however, in answer to question 13, that I favor the application 
of the reciprocity principal as outlined. 



304 RECIPROCITY STATEMENTS. 

Perhins, Goodtvin & Co., New York. 

We are exporters of news and book paper, and of paper-makers' 
materials, and without going into specific answers to your general 
questions, we have the honor to say that we are very much in favor of 
commercial reciprocity and all treaties looking toward that end, as we 
believe them to be very much for the benefit of the commercial and 
maritime interests of this country. 



C. Morton Steicart & Co., Baltimore. 

In the natural affinities of commerce there is no more conspicuous 
evidence of the raison d'etre for reciprocal intercommunion than 
between the great Eepublic of Brazil and the Eepublic of the United 
States of North America. 

The Brazilians need everything we produce ; their aspect is one of 
continuous production of what we need, while close bonds of commercial 
union would increase their consumption of everything we produce. 
Their territory covers an area of 3,600,000 square miles, ours about 
300,000 less; their western territory is undeveloped. Our population 
is about 65,000,000 5 theirs about 16,000,000. Every man, woman, and 
child in this country consumes with geometrical accuracy 1 barrel of 
flour per annum ; in the Brazils about one-sixteenth of the same quan- 
tity. The law of progress on this article proves that a constant increase 
of consumption, on even conditions, can be counted on. In slavery 
times the planters kept swine for food supply for their hands; as labor 
has become nomadic, and procures its own subsistence, the United States 
look to a permanent outlet in the increasing consumption in the South 
American Eepublic for provisions. 

There is every reason to look forward to great mechanical develop- 
ment in railways and concomitant enterprises, and the people of the 
United States are peculiarly apt in the spirit of invention and combina- 
tion. It will require time before America can expect to introduce her 
manufactures in this new territory, owing to the fact that the British 
credits are of such long term that some of their houses have a permanent 
credit outstanding of $1,000,000 to $1,250,000 always on that country. 
As long as the importers of the United States use English credits to 
supply the immense balance of trade against this country it is not to 
be presumed that they can make the necessary outlay to send their man- 
ufactures to Brazil on the extended term of credit which is the custom 
now between Great Britain and Brazil. In a measure the same state of 
affairs exists as to the Continental capitalists, who provide facilities for 
the credit system now general with their trade in South America. 

The trade from Brazil to this country amounts to $100,000,000; our 
export trade amounts to about $10,000,000. The method of collection 
of revenue is by imposition of an export duty. 

It then appears that the amount of the food supply which we send 
to Brazil is not much greater than the export duty on goods sent to 
America. It would thus appear that there would always be a reasonable 
method of the lenient exercise of the lex talionis to enforce a commer- 
cial compact which would place the American producer in direct touch 
with the Brazilian consumer. 



RECIPROCITY STATEMENTS. 305 

EXTRACT FROM LETTER WRITTEN IN RIO DE JANEIRO, BRAZIL, JANUARY 10, 1896, BY 
MESSRS. LEVERING & CO. TO MESSRS. E. LEVERING & CO., BALTIMORE, Ml). 

Flour. — We were startled a few clays ago to receive reliable information that the 
Government railroads have discriminated largely in their freight rates in favor of 
flour ground here, the latter paying less than one-third of what, is collected on Amer- 
ican flour. This is certainly one of the grossest injustices ever brought to our notice, 
and if continued will result in the utter annihilation of the American flour trade in this 
country. The increase in the duty from 24 reis per kilo to 32 reis per kilo, coupled 
with the entirely free entry of wheat — the former expedient tax of 10 per cent ou f 
the latter having been abolished in the new tariff— is in itself a disadvantage which 
it seems almost impossible to overcome; therefore, under the existing conditions, we 
consider that we can no longer compete with the native mills. We therefore tried to 
explain this to you by cable on the 7th instant, recommending to you to discontinue 
the shipping, as in our judgment nothing but loss can be the result. This matter is 
a very serious blow to us, and no doubt to the Baltimore trade in general, but we 
have not given up hopes yet to obtain a reconsideration from the Government, par- 
ticularly in the matter of differential freight rates, if not in the duty question also, 
and have addressed Mr. Thompson, our minister, on the subject. 



State Board of Agriculture of Neio Jersey. 

Freehold, March 23, 1896. 
My Dear Sir: The committee representing the farmers of Xew 
Jersey which appeared before your Committee on Ways and Means, 
relative to reciprocity with Cuba, appreciate your willingness to hear 
them, and courtesy extended. Up to the time of the abrogation of the 
Cuban reciprocity treaty Mr. Schanch was a strong Democrat. Since 
that time he has been a strong Eepublican. I believe the abolishing 
the reciprocity is what placed Sew Jersey in the Republican ranks. I 
sincerely hope the reciprocity may be renewed. 
Yours, very truly, 

D. D. Denise. 
Mr. A. J. Hopkins. M. C, 

Washington, D. C. 



Xicholson File Company, Providence, R. I. 

Reciprocity was a thing of such short life, after its birth in 1S90, that 
the nation had no chance to test its merits, and one can not do much 
more than express an opinion in speaking of it, as there w^as hardly 
time to learn much about facts and figures, and it is these tests that 
have got to be applied to ascertain the value of any such policy. 

Our own opinion is, that thiere are a number of countries with which 
reciprocity of trade would be an advantage to us, and that a law which 
would permit such reciprocity should be upon the national statutes. 

We are sadly deficient in means of transportation and in banking 
facilities with just those countries where reciprocal trade is desirable, 
and the English, French, and Germans have so much the start of us 
in most of them that, with all the advantages possible, considerable 
time and money will have to be invested to make even reciprocity a 
success. But these things will right themselves if there is any show 
for a fair profit on the venture. 

H. Rep. 2263 20 



308 RECIPROCITY STATEMENTS. 

The Goulds Manufacturing Company, Seneca Falls, N. T. 

We are very much pleased to know that the House is taking up this 
question of reciprocity and commercial treaties, which we hope ca.n be 
brought about so that we shall have the same arrangement as was in 
vogue during the Harrison Administration. 

You will note from our letter head the full address of our firm and the 
goods we manufacture. We have a market for our pumps both at home 
and abroad ; we cultivate the latter very largely. Our business is done 
both direct and through commission houses, but to a very large extent 
through the latter. We had an agent traveling in Europe for seven 
years, but of late have withdrawn him from so doing because of the 
unprofitableness and the competition which we met from foreign manu- 
facturers. 1 In France we were debarred entirely from transacting busi- 
ness. We opened an agency there several years since, but the tariff 7 is 
so very high that it is impossible for our agent to compete with the 
local manufacturers, and consequently he has a very large stock on hand 
which he has been unable to sell. 

We are most decidedly in favor of a renewal of the customs arrange- 
ment and commercial treaties that were in vogue under the Harrison 
Administration, and we hope they can be put in force again. 

The constant tendency of our manufactured goods is to decline in 
price. Competition is very strong in this country, and everybody wants 
to get in the foreign trade, and to accomplish this they reduce their 
prices. We have no trouble whatever in competing with the English 
manufacturers. Our strongest competitors are with the Germans and 
with the French in their own local markets. We export no goods what- 
ever to Germany nor to France. Our foreign business, we think, has 
decreased during the past six years, and particularly in those countries 
with whom we had reciprocity arrangements. 

The replies that we have made to your circular, you will notice, are 
of a general character and do not give you the tabulated statement 
that in many instances you request, and I regret it is impossible for us 
to favor you with same. We have in our employ about 400 hands. 

In our judgment, we know of nothing that had a tendency to stimu- 
late business in this country like the commercial treaties arranged by 
Mr. Blaine. What it seems to me we want in the United States is to 
cultivate business with our southern neighbors — that is, Mexico, Central 
and South America ; and whatever is necessary to be done to accom- 
X3lish this our Government will certainly be farsighted in pursuing in 
order to do everything in their power to bring to us the business from 
these countries. We are certainly entitled to this, and whatever is 
necessary by which to accomplish it is only a liberal and patriotic 
course. 



Norton Bros., Chicago. 

We are decidedly in favor of the application of the reciprocity prin- 
ciple to future tariff legislation. 



James A. Ware, Whitecastle, Louisiana. 

2. A sugar planter by occupation, running therewith a strictly plan- 
tation store, dealing in American goods only. 



'The most important competition that we have is from the German manufacturers. 



RECIPROCITY STATEMENTS. 307 

3, 4. Do not deal in foreign goods. 

5 ? G, 7. The McKinley tariff act of 1890, removing the duties on raw 
sugars and giving a bounty to American producers, reduced the price 
of our product practically to the same extent as the duties removed. 
The reciprocity treaties provided for in that act and carried out by the 
President were unquestionably of great benefit to the producers in 
this country of such important articles as corn, wheat, Hour, and meats. 

S. My production of sugar is about 25 per cent greater than six years 
ago, and the reduction in price is about 33 per cent. . 

9. Sugar worth 5f to 5J cents in 1890 is worth 4 cents to-day. 

10. The German export bounty on sugar is very detrimental to the 
interest of producers in America. 

12. As stated above, the effect of the reciprocity treaties of 1890 
were favorable to the exporters and producers of some of the largest 
overproduced articles of the American farms. 

13. In my humble opinion, the treaties as provided for in the act of 
1890 were exceedingly wise. 

Protection to the American industries by way of judicious tariff laws 
is protection to American labor. Diversified crops and diversified 
manufacturing gives activity to capital and opens up new fields for the 
laboring man. A general discussion or a full expression of my views 
upon the tariff question would probably exceed my privilege at this 
time. 



Louis Co/itencin <£ Son, New York. 

March 23, 1896.. 

Some thirteen or fifteen years ago the Secretary of the Treasury 
requested merchants to express their views on the tariff, which views 
were printed in book form prior to the act of 1883. Our senior, then a 
member of the firm of Messrs. Frederick S. Eobinson & Co., recom- 
mended "reciprocity." 

When the McKinley bill was before the Finance Committee, we 
recommended again reciprocity in a communication to ex-Senator the 
Honorable Frank Hiscock, of said committee. 

Xo better example can be cited as to the benefit of reciprocity than 
the serious losses sustained by both France and Italy by the rupture 
of the commercial treaty between the said two countries. To Italy it 
proved to be almost a national disaster, and which is a matter of history. 

What we claim, however, is that, when revisions of tariff are made 
and duties are reduced, those nations benefited thereby should recipro- 
cate, there being no sense in giving millions away without any return. 
Our motto should be, " Give and take." 

Our senior, although not a diplomat, succeeded in having the Italian 
Government voluntarily revoke the decree against our pork, which so 
much helped the past Administration in the negotiations with other 
nations that it was so acknowledged in an editorial in the New York 
Tribune. Italy was fairly treated in the McKinley bill, and thus 
showed her appreciation. We mention said fact as a proof that foreign 
Governments will listen to reason and are willing to reciprocate. 

If amateur diplomacy met with success, real diplomacy will work 
wonders, with the additional advantage that more cordial and friendly 
relations will be established between our people and the people of 
other nations, and between our Government and other governments. 



308 RECIPROCITY STATEMENTS. 

We respectfully beg to suggest the adoption of Senator Pettigrew's 
permanent commission on tariff, with the additional power to said com- 
mission to take preliminary steps with foreign governments towards 
establishing commercial treaties. The keynote should be, reasonable 
protection to our products and our industries toward those nations will- 
ing to exchange commodities and reciprocate. 



New Yorlc and Cuba Mail Steamship Company. 

2. Bahama Islands — Nassau. 

Cuba — Havana, Cienfuegos, Santiago de Cuba, Manzanillo, and Guan- 
tanaino. 

Mexico — Yera Cruz, Tampico (connecting with auxiliary service to 
Alvarado, Tlacotalpam, and Coatzacoalcos), Tuxpam, Progreso, Cam- 
peche (connecting with auxiliary service to Frontera and Laguna). 

4. We have extended our service and perfected through traffic arran ge- 
ments with connecting lines reaching interior points, thus providing an 
improved transportation service, which has materially increased the 
volume of business. 

5. The laws and regulations in Cuba governing the manifestation of 
goods from the United States, and the lines imposed on our steamers 
but not upon those from foreign ports, have diverted shipments and 
greatly reduced our trade in Cuban markets. 

6. With the abrogation of the reciprocity treaty between the United 
States and Cuba, imports from this country have been made subject to 
the highest rates of duty. This has taken away our trade in railroad 
iron, cars, locomotives, machinery, etc., and has almost killed the trade 
in flour, pro visions, and produce. 

7. The reduction of duties on provisions, cereals, and produce would 
restore the trade to the United States. In flour alone our trade 
would increase 500 per cent. On other products the volume of traffic 
would be many times greater than it now is. 

8. The volume of business was more than doubled under reciprocity 
arrangements. The Statistical Bureau of the Treasury Department 
will confirm this statement, and also demonstrate how the business has 
since fallen off, but it can not show to what extent our trade with Cuba 
would have increased had the influence of reciprocity continued a few- 
years longer. 

9. The market prices can be better furnished by houses in the trade 
which we have named to you, but we believe commodities used in Cuba 
and Mexico have been reduced from 25 per cent to 50 per cent during 
the last six years. 

10. The cost of labor paid by foreign manufacturers enable them, in 
many instances, to land the merchandise at the ports of Cuba more 
cheaply than can be done by American manufacturers. But, with the 
advantages enjoyed by American manufacturers and producers under 
reciprocity arranged with the island of Cuba — where the balance of 
trade was so much against us — they were enabled to gradually increase 
their exports, thus cheapening the cost of production. 

11. The nature of our business does not call for a reply from us to 
this question. 

12. The reciprocity treaty enabled us to double our tonnage-carrying 
capacity to Cuba, and yet carry full cargoes. Its abrogation left us 
with the increased tonnage-carrying capacity, but with less than half 
cargoes. 



RECIPROCITY STATEMENTS. 309 

13. We strongly favor the reciprocity principle and favor its applica- 
tion so far as it is possible to do so. 

We have carefully refrained from giving figures, as the statistical 
data which is available from the Treasury Department is broader and 
more authentic than can be secured elsewhere. 

Should any farther statements or explanations be desired by your 
eominittee, our services are at its disposal. 



Lymansville Company, Providence, B. I. 

Reciprocity is the onty and true principle under which the United 
States of America can permanently enlarge its foreign trade, and thus 
directly increase the business of those producing goods or staples for 
export, and benefit indirectly all branches of business as well as labor. 

A twenty years' uninterrupted trial with a McKinley tariff bill in 
addition will make the United States not only the first agricultural, 
but the first manufacturing, nation of the universe, and Xew York the 
monev center of the world. 



B. Ayres, Philadelphia, Pa. 

I am decidedly in favor of the reciprocity principle and commercial 
treaties, and trust they will receive favorable consideration by Congress. 



Gustavo Niederlein — The Philadelphia Museums. 

In reply to your circular letter of March 4, 1 beg to state that for the 
next thirty days it will be impossible for me to appear before your 
honorable body, having in charge the organization and installation of 
the Commercial and Economic Museum of the city of Philadelphia. 
There are 60,000 products from nearly forty different countries to be 
installed before the 1st of May. 

In regard to the reciprocity policy inaugurated under the tariff act of 
1890, and abandoned by the Fifty-third Congress, a few remarks will 
illustrate my opinion as far as the Argentine Republic is concerned. 
The Argentine Republic has, in general, a low tariff for all products, 
which are mostly imported from the United States. In my opinion, 
these tariffs on petroleum, wood, agricultural implements, machinery, 
lard, etc., can not be lowered, the revenues of the Government mostly 
depending upon import duties. 1 can not see how the United States of 
America could be more favored. A change, for instance, on the tariff 
of wool could only induce the Argentine Republic to place a high tariff 
on petroleum and agricultural implements, wood, and machinery that 
might be imported from the United States. It is against all precedents 
to lay such exceptional tariffs in the Argentine Republic, and I am sure 
that if the United States should make impossible the importation of 
Argentine wools, the Argentine wool export would not suffer, going- 
en tirely to Europe. 

To be short, the Argentine Republic does not depend upon the tariff 
policy of the United States and Mill look with more or less indifference 
upon changes. 



310 RECIPROCITY STATEMENTS. 

But, on the other hand, I can only recommend to your honorable 
committee to do everything to secure the South American markets, 
which are very large and very profitable, increasing every year. I also 
recommend to look after facilities for direct imports from South America 
of raw stuffs. 

In order to make the Monroe doctrine a profitable one, it would be 
wise to favor all South and Central American countries, making special 
tariffs for their raw products imported to the United States, and giving* 
subsidies to new steamship lines in order to make the freight cheaper 
and trade possible. If, for instance, the United States would put back 
a higher tariff' on wool, I would recommend to make it a little lower for 
wools from the Argentine Eepublic, Uruguay, Peru, Chile, etc., and in 
this way exclude the wools from Australia and Africa. In other words, 
I would recommend to favor all American countries alike and make 
only reciprocity treaties with coun tries of other continents. 



The Replogle Governor Worlcs, Akron, Ohio. 

I would say, by all means encourage reciprocity in trade, not only 
among ourselves, but with foreign nations. Every business man recog- 
nizes this principle in his own affairs. Other things being equal, he 
will buy of parties who patronize him. It is the old boyish trick, "You 
tickle me and I'll tickle you.' 7 It holds good the world over, and in 
politics no less than in business. 

So long as we are to have a "protective tariff," let the Executive have 
the authority to negotiate reciprocity treaties. We ought to have a 
reciprocity treaty with our nearest neighbors, particularly with Canada. 
England has been very liberal in such matters and has built its enor- 
mous commerce on the highest and best form of reciprocity; in fact, 
has gone a little farther than what your committee perhaps considers 
reciprocity. In other words, it has opened its doors wide without stop- 
ping to ask whether other nations will reciprocate or not. 

England is America's best customer, and business men always give 
their best customers the very best of goods and on the best terms that 
they allow anyone. Why should we not reciprocate with England in 
this matter as well as with Canada, Mexico, and South American Repub- 
lics ? Yes ; by all means, give us reciprocity. It will hasten the day at 
least of a revenue tariff, if not absolute "free trade." 

The country owes a great debt to the lamented Blaine for the sugges- 
tion of that tv ord "reciprocity." 



Fred A. Wood, Winterport, Me. 

I am of the opinion, and think it general, that reciprocity is a sound 
business principle. We sell our products and admit what we do not 
produce, and, so long as we produce more than we consume on such 
articles, we need protection. If necessary our Government should aid 
transportation lines to countries that will buy our products. 



RECIPROCITY STATEMENTS. 311 

Jae. Trautman & Co., New Orleans. 

Reciprocity, if practiced so that each of the contracting parties shall 
be mutually and equally benefited by it, would be a grand thing for a 
country like ours, and we would, under such conditions, have no hesi- 
tancy in indorsing its immediate inauguration by the Government of 
the United States with every country, civilized or uncivilized, on the 
face of the globe. 

Reciprocity means to exchange by traffic one article for another. No 
country in the world is better situated than the United States to enjoy 
the fruitful results of such exchange of commodities. It is useless to 
enumerate the various articles manufactured and produced in the vari- 
ous sections of our grand Republic, and all suitable for such barter, but 
no reciprocity treaty should be entered into with any country that would 
not fairly execute its provisions, as far as possible, under such treaty. 

To admit to this country free of duty articles of production and 
manufacture from a country which does little or no bartering with our 
country would be a grave mistake — as, for instance, that under the 
McKinley reciprocity law with Cuba and other West India islands. 
The former sold to the United States, if we understand the matter cor- 
rectly, 95 per cent of the sugar produced on the island, and purchased 
very little from the United States, except some flour and other articles, 
in value not exceeding one-fifth of the amount paid for sugar ; and even 
the exportations from this country into Cuba were not absolutely free of 
duty, but had to pay considerable of an import duty, leaving the balance 
of the trade heavily against this country; and it must be remembered 
that the sugar industry of the United States was in a measure para- 
lyzed by the introduction of free sugar, while the industry in Cuba and 
other countries was proportionately stimulated. 

To make reciprocity acceptable and beneficial to the country as a 
whole, Congress should put aside politics, and honest statemanship 
should be substituted. Our commercial intercourse with such countries 
as embraced the benefits of reciprocity can only be increased by estab- 
lishing upon a firm basis well-equipped fast steamers to ply between 
tbis and such countries under the United States flag, and in order to 
sustain such lines of steamers Congress should be liberal, and by subsidy 
maintain such lines until they are self-supporting by the increased 
business. 



The Barnes Manufacturing Company, Mansfield, Ohio. 

In reply would say that if we had a McKinley protective tariff and 
a J. G. Blaine reciprocity arrangement the manufacturers of this 
country could take care of themselves, and in our opinion this is about 
the only way that the home market can be protected. 

Zsow is the time for manufacturers to make a special effort to secure 
trade relations with the different countries in South America, and this 
could doubtless be better brought about if our Government either con- 
trols or subsidizes a line of vessels to those countries. 

During the past three years the trade in our line has been buying 
from hand to mouth, but previous to that time they placed much 
larger orders, which gave the manufacturers an opportunity to base 
their calculations in making purchases. Previous to the last three 
years the selling price enabled the manufacturer to have a reasonable 
profit, but during the last three years the margin has been extremely 
close, which I think is largely brought about by a lack of confidence 
owing to the change in the tariff bill. 



312 RECIPROCITY STATEMENTS. 

Statement of Mr, F. B. Tliuroer, JS T eiv York City. 

lam chairman of the committee on foreign commerce of the Chamber 
of Commerce of the State of Kew York, and president of the United 
States Export Association, which is a union of American producers, 
manufacturers, and merchants to encourage the consumption of Ameri- 
can products in other countries. 

Some years ago, while on a voyage around the world, I made the 
acquaintance of an English cotton manufacturer in Bombay who told 
me of the wonderful development of cotton manufacture in India and 
prophesied that they would soon be supplying all the cheap cotton 
goods used in the East. I told him I had just come from China, where 
American cottons were taking the market for fine goods, because they 
were not loaded with clay like the English goods, and I said, a Well, if 
you take the market for cheap goods, and we for fine goods, what are 
the Lancashire manufacturers going to do?" "Oh," said he, "the 
mother country will open up Africa and make it the fashion to wear 
breech clouts." An d, Mr. Chairman, th at is precisely what British states- 
manship has been doing ever since. Every effort of an English manu- 
facturer to reach new markets finds a ready response on the part of the 
British Board of Trade — a department of the Government — to support 
him. Diplomacy is not above advancing trade interests. Force is at 
hand to protect the rights of traders. Liberal pay is accorded to steam 
lines for the carriage of ocean mails, and the entire national influence 
is constantly exerted in this direction. 

At the November meeting of the New York Chamber of Commerce 
the committee on foreign commerce submitted the following report, 
which was adopted unanimously : 

To the Cliamoer of Commerce: 

The events of the past year furnish some object lessons to American producers;, 
manufacturers, and merchants which are worthy of more than passing consideration. 
The war in the East has probably inaugurated a new epoch for hundreds of millions 
of people. The partition and opening up of Africa is scarcely less important in its 
ultimate results to commerce. Thus far our increase in population and wealth in 
this country has measurably kept consumption on a parity with production; but 
evidences are not lacking that this state of things can not continue. If we would 
keep step to the music of the times, and keep our labor and capital remuneratively 
employed, we must bear in mind the wants of the other 1,370,000,000 of people who 
constitute the population of the world — both natural and creative or educational 
wants. There are some encouraging signs that our people are not insensible to this. 
The favor with which the efforts to create a new navy and build up a commercial 
marine have been greeted is an earnest of times when the American flag may again 
be seen floating in all parts of the world. The genius of our inventors is every- 
where recognized, the quality of our products everywhere commended. If we are 
true to our traditions and appreciative of our opportunities, the United States will 
lead the world in the race for commercial supremacy. 

The following resolutions are respectfully submitted: 

liesolved, That in the opinion of this chamber the present year marks an epoch in 
commercial history; that the present is a time worthy of the best efforts of our pro- 
ducers, manufacturers, and merchants to extend the export trade of the United 
States, and that these efforts should be supported by a wise and progressive policy 
on the part of our Government. The principle of reciprocity should be recognized 
in our diplomacy; our consular service be controlled by civil service rules and ade- 
quately compensated, and our carrying trade be fostered as far as possible by liberal 
pay for the carriage of mails on the ocean as on land. 

liesolved, That the step recently taken by the present Administration in the direc- 
tion of placing a portion of our consular service on a business basis is worthy of all 
commendation, and should be followed as fast as practicable by further steps in the 
same direction. 



RECIPROCITY STATEMENTS. 313 

Edward IT. Haskell, American Paper Makers 1 Association. 

[From an address by Mr. Edward H. Haskell, of Boston, before tho American Paper Makers' Asso- 
ciation, at New York. February, 1806.] 

It seems to me eminently desirable that this great industry, which 
has attained so prominent a position, rising in a few years from that of 
ninth or tenth in importance to the position of third in importance in 
the great interests in tins country, and with the possibilities of its 
future development, should take some intelligent action with reference 
to the development of its export business. The gentlemen are aware 
that during the operations of the reciprocity features of the last Admin- 
istration, the general export of all classes of business— all industries — 
obtained a marked development, I think something like $22, 000.000 or 
$23,000,000 in two years, growing out of the magnificent enterprise and 
conception of the scheme presented by our honored Secretary of State, 
Mr. Blaine, and through which the organization of the Bureau of South 
American Republics was established. 

The present President antagonized that special development in this 
country, and the reciprocity features of our intercourse with other 
nations were repealed. As a matter of fact, we are the losers. Dur- 
ing the year 1895 we were the losers in the matter of export to those 
countries to the extent of $12,000,000. To a certain extent paper 
entered into that trade, and it seems desirable that in the reinaugu- 
ration of the reciprocity scheme or plan, which it seems very certain is 
about to be developed by the succeeding Administration — at least. I 
have no question but what the succeeding Administration which comes 
into power next year will certainly reestablish the reciprocity features 
of our system — and it seems very desirable that our industry should be 
placed in a position to reap any benefit therefrom. 

Further than this, the present Administration has, out of suggestions 
made some three or four years ago and through suggestions made by 
several of the chambers of commerce and boards of trade of Boston, 
endeavored to place the consular system upon a business basis; and 
as a development of that feature we are likely to see, under the next 
Administration, a most thorough reorganization of the consular system. 
They are to operate to a certain extent — as they ought to do — as com- 
mercial agents of the industries and manufactures of the United States. 
Those who have traveled abroad have been thoroughly impressed with 
the fact, and have seen it also in this country, that the consular agents 
are representing in another sense the country which they represent — 
that is, in looking after their commercial interests. Kow, it is proposed 
to establish and to develope and to organize on a business basis the 
consular system of this country. 

The National Board of Trade, at its last session, indorsed that propo- 
sition, as well as the reciprocity features of our Administration in the 
development of that trade; and it is very clear that a great deal of 
benefit will be derived by the great industries of this country as the 
result of this reorganization. It seems to me, Mr. President and gentle- 
men — and that is the purpose of my talk — it seems to me desirable that 
this association should inaugurate or originate or instruct its executive 
committee to originate some sj^stem by which we can, through the State 
Department and through our consular service, be able to get at all the 
information that can be made available to the great allied interests of 
the paper and pulp interest of the country. I have no question but that 
its development can be largely increased in years to come if we enter 
upon this in an intelligent maimer. 



314 RECIPROCITY STATEMENTS. 

L. G. Burnham & Co., Boston, Mass. 

Our business is not of a character to be directly affected by the ques- 
tions suggested, except the general one, ]So. 20. To this we reply in 
the affirmative, believing that the principles of reciprocity should be 
applied wherever possible to every nation. We believe the prosperity 
of this country would be greatly increased if reciprocal treaties could 
be entered into with all parts of the Western Hemisphere. 



The Plant Steamship Line, Port Tampa, Fla. 

2. General transportation of mail, freight, and passengers. Eegular 
mail to Cuba, semiweekly for half the year, triweekly for the balance of 
the year. Also semiweekly mail to Halifax, Nova Scotia, and, when 
ice breaks up, weekly service to Prince Edward Island. 

3. Cuba, Nova Scotia, Jamaica ; also have in contemplation for the 
coming fall weekly service to Honduras, Central America. 

4. Tried to find business enough to warrant a line of steamers to 
Honduras, Central America ; not enough in sight yet to make it feasible. 
Run semimonthly trips from February, 1894, to March, 1895, when route 
was abandoned. Had a good fruit trade into this port, but no exports. 
Have also run steamers to Jamaica for the past six winters at a loss. 
Passenger trade fair, but no freights. 

5. In Cuba find a prohibitive tariff on American flour and hay in favor 
of Spain. The port charges and other government taxes in Habana are 
excessive. We pay each voyage: Pilotage, $52; interpreter, $8.50; 
fumigating powder, 81.25; custom-house charges, $16.25; besides a tax 
of $1 per head on each passenger from or to the country and a tax of 
one-half per cent on all revenues and disbursements. These port 
charges in Habana for the year 1895 aggregated $24,139. The discrim- 
inations against the United States in the present Spanish tariff prevent 
shipments of any amount going from here to Habana, e and our freight 
trade to that port is very light, although we do a good import business 
from there, probably twenty times greater than our exports. 

6. In the three months, February, March, and April, 1892, we exported 
to Habana 4,000 tons breadstuff's from the Western States. The new 
duties imposed by the government of the Island of Cuba annihilated 
this business, which gave promise of increasing to immense proportions. 

7. If the above duties were reduced or removed the market would 
immediately open for a renewal of this trade, which in volume would 
greatly increase in time. 

8. Our freight business to Habana is about 20 per cent less than it 
was six years ago. 

9. We are not posted on prices. 

10. lS"o advantage were laws and tariffs impartial and the unjust port 
charges as above mentioned done away with. 

11. Our merchants can compete with foreign merchants without 
doubt, provided tariff* regulations did not interpose such restrictions 
as are now in force. 

12. Under reciprocity treaty with Cuba our export trade increased 
steadily. We did not begin to feel the effects materially until the fall 
of 1891, when we increased our facilities for handling freight and busi- 
ness developed to the figures before stated, finally to be ruined by the 
change in the laws. 



RECIPROCITY STATEMENTS. 315 

13. Should our reciprocity agreements with Cuba be renewed under 
a general law authorizing the President to negotiate reciprocity treaties 
witli other nations, we are certain that we could develop a trade of 
2,000 or 3,000 tons per month. This would warrant us running larger 
ships to that port, and we are satisfied that there would be a steady 
iu crease in the volume of business. 

Our own Government also imposes almost prohibitory charges on our 
ships. We pay annually in Key West for pilotage 81,800, custom- 
house charges from 810,000 to 615,000, and quarantine expense $2,750' 
annually to the State board of health of Florida. 

The total annual port charges against the ship in the American port 
is about 815,000 to 820,000, and in the Cuban port about $25,000, mak- 
ing a total of port charges against the ship of from $40,000 to $15,000, 
for which we get absolutely no return. It can thus readily be seen how 
difficult it is for commerce to develop when handicapped with the above 
port charges against it. 



Richards & Co., 203 Broadway, New York City. 

2. Our business is that of obtaining patents for inventions, protec- 
tion of trade-marks, copyright registration in the United States, and 
in all the countries granting such protection. 

3. We deal with nearly every country on the globe. 

1. We have made and are constantly making efforts to extend our 
foreign business. The methods used are direct correspondence, the 
distribution through the mails of circulars and price lists, and, so far 
as European countries go, occasional personal visits to our correspond- 
ents there. Our efforts are meeting with success, especially in the 
principal European countries which we have personally visited. 

5. As will appear from the foregoing, the laws which interest us are 
those which relate to the protection of inventions (patent laws), and 
the registration of trade-marks and copyrights. 

There are at present certain discriminations which work injury to 
United States inventors, and which we believe might be removed with- 
out serious difficulty. We shall mention but two such matters, since 
they are the most prominent that exist to-day: 

(1) We would mention a discrimination made by the Germans 
against the citizens of the United States. The facts, briefly stated, 
are as follows: On the 1st of October, 1891, an amended patent law 
came into effect in Germany, which provided in its second section that 
an invention should not be considered as new (it must be new to be 
patentable) if at the date of filing the application the invention has 
been described in public prints within the last century, etc. An excep- 
tion is made in favor of the official publications of foreign patent office, 
which shall only be considered equal to public prints after the lapse of 
three months from the date of publication ; but this exception is made 
only in favor of the publications of those States "in which, accord- 
ing to the publication of the Imperial Chancellor, in the Imperial 
Gazette, reciprocity is guaranteed."' Under the terms of this act, if a 
citizen of the United States files his application for patent in Germany 
a single day after his patent in the United States has issued, the Ger- 
man application is rejected, notwithstanding the existence of the excep- 
tion to the rule indicated above, and notwithstanding the fact that the 
official gazette containing the publication of the United States patent 



31 6 RECIPROCITY STATEMENTS. 

could not by any possibility have reached Germany before the German 
application was fiJed. 

The patent laws of the United States grant to Germans, as they do 
to citizens of the United States, the right to apply for a patent at any 
time after the issuance of a German patent for the same invention, pro- 
vided only that the article covered by the patent has not been in public 
use or on sale in the United States for more than two years previous 
to the filing of the application. Thus it will be seen that the United 
States already extends to Germans a larger privilege than the Germans 
grant under section 2, but nevertheless the benefits of this section 
have never yet been conceded to citizens of the United States for want 
of the preliminary publication in the Imperial Gazette, which, we pre- 
sume, awaits a formal agreement between the two Governments. 

There have come within our knowledge a number of cases wherein 
valuable rights have been lost to inventors by reason of the fact that 
they were not admitted to the privilege which would seem to be their 
due, and which appears only to hang upon the exchange of a little 
diplomatic correspondence. 

(2) The second difficulty to which we would draw your attention is 
with relation to the obtaining of protection for patents and trade-marks 
in Japan. The Japanese have laws for the protection of both patents 
and trade-marks, but up to the present these laws have been officially 
determined to apply only to natives, the officials holding that as for- 
eigners resident in Japan were not subject to the jurisdiction of 
Japanese courts, and hence were not punishable by them for the 
infringement of rights under patents and trade-marks of native Jap- 
anese, they could not undertake to punish native Japanese for the 
infringement of rights granted to such foreigners. 

During the month of November, 1804, however, a treaty between 
Japan and the United States was ratified, providing among other things 
for reciprocal protection for patents of invention, trade-marks, etc. 
This treaty comes into effect in November, 1899 ? we understand, and it 
will then be possible to obtain such protection as is desired. For the 
present there appears to be no means for securing protection. It seems 
to us, however, that Japan, having entered into this treaty agreement, 
would be inclined to meet with favor a proposition looking to an ad 
interim arrangement by which protection should be secured to citizens 
of the United States until the treaty comes into force. 

We are having inquiries made of us constantly as to how protection 
can be secured in Japan, and the matter is undoubtedly one of great 
importance to inventors and merchants here. Such an arrangement as 
we suggest could not help but be of marked benefit to a large class of 
the community. 

6. The tariffs of foreign countries do not directly affect our business. 

7. The answer to question 6 will apply in answer to this question. 

8. Our business is probably double what it was six years ago. 

9. Our charges for services are approximately the same as they were 
six years ago. 

10. The question is not applicable to our business. 

11. The same is true of this question. 

12. We believe that the reciprocity treaties of 189") were favorable to 
the export trade of the United States, and that their repeal was a 
heavy blow to the same. 

13. We do certainly believe in reciprocity treaties, and favor the 
enactment of such a general law as is suggested. 



RECIPROCITY STATEMENTS. 317 

Beeman & Cashin Merchandise Company, Evansta-ft, Wyo. 

As secretary of the Evanston Board of Trade, permit me to answer 
your questions for myself at least, and my observation and inquiry 
warrant me in saying my views are substantially the same as all busi- 
ness men in this section of country. 

First. The reciprocity arrangement was favorable. 

Second The effect of the repeal was unfavorable. 

Third. It is expedient to pass some law providing for reciprocity. 

Fourth. Give us a " department of commerce," with a business man' 
at its head, and limit his duties as nearly as possible to the development 
of foreign commerce. Through our consular and diplomatic service he 
could learn of every market in the world where American goods could 
be introduced and under what conditions, and could then place this 
information at the disposal of the manufacturers here. I believe the 
right man could increase our business to an amazing extent. If our 
Government were a business institution, this would have been done 
long ago. His recommendations would be invaluble to an executive in 
negotiating reciprocity. 

Our Government should also provide exchange, transportation, and 
communication facilities with South America, and possibly other parts 
of the world. 



Edward H. Haskell, Boston, Mass. 

Referring to your recent courteous request as to my views upon the 
proposition now before your honorable committee looking toward the 
reestablishment of reciprocal relations with other countries, through 
commercial treaties, and as to my experience and views as to the prac- 
tical results secured to this country during the operation of the former 
reciprocity treaties, 1S913 to 1894, I have to say that I have been for 
many years a strong advocate of and supporter of the reciprocity prin- 
ciple in dealing Avith nations, especially our South American Republics. 

I have always felt that reciprocity commended itself as a business 
principle, and that, if it was given a fair trial in the administration of 
our affairs and placed on a sound basis, and adopted as one of the 
leading principles of our Government, it must soon result in materially 
enlarging our foreign trade under most favorable conditions. 

This was clearly shown by the rapid development of our trade with 
the South American Republics which followed the establishing of 
reciprocal relations with these countries in 1891, through the able 
efforts of Secretary Blaine, and which grew from 890.000,000 in 1S92 to 
3104,000,000 in 1893, and in Avhich extension of trade the paper indus- 
try, which I represent, was very much benefited; and its efficacy as a 
principle in dealing with these countries was specially shown by the fact 
that, in 1S95, after the repeal of the reciprocity treaties, our exports to 
these same countries fell off' to 687,000,000, the lowest point reached 
for many years. 

Let reciprocity be established as the governing policy of our people, 
and easy access to these countries be established by regular steamship 
connections and proper banking facilities, and I am confident our trade 
with these countries alone would soon reach $200,000,000. 

All the correspondence and reports from our consular service in these 
countries have made it (dear that the people of these countries would 



318 RECIPROCITY STATEMENTS. 

prefer to nave close commercial relations with this country than with 
European nations, 

It would also serve, in a special sense, to establish more cordial and 
permanent relations between ourselves and these countries, and go very 
far to bring about a general appreciation of the many strong qualities 
which have made our own country conspicuous as the leading commer- 
cial Republic of this hemisphere. 

I sincerely trust that early steps may be taken both to reestablish 
the reciprocal relations with all the South American Eepublics and to 
extend these relations to the other great nations of Europe. 



Lyon, Clement cb Greenleaf Co., AYauseon, Ohio. 

In regard to reciprocity, we would say that while the Government 
figures readily show the benefit and also the loss by the repeal, we would 
state that our direct trade increased more than $200,000 when it went 
into effect for the first year and declined that much when it was repealed. 
We are much in favor of reciprocity, as we gain something when we 
give something to other nations. We regard it as practical politics. 



BRJEADSTUFFS 



OIRCULAB OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means 



House of Representatives 



Washington, 1). C, March 4, 1896. 
Sir: In order tliat they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by which 
they may be removed ? 

8. AY hat changes have recently occurred in the traifts of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of 3 T our export trade? 

10. What is the output of your establishment compared with that of 
six years ago \ 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets \ 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices I 

319 



320 RECIPROCITY STATEMENTS. 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market ; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity ? (The purpose of thi s inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) 

IS. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal % 

19. What was the effect upon farm products particularly ? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible"? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepreseutatives; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



EEPLIES. 

E. 0. Stanard Milling Company, St. Louis. 

We are flour manufacturers. 

We have about one-half million dollars invested in the business. 

About 150 employees. 

Value of annual product about $5,000,000. 

Our market is both at home and abroad. From one-third to one-half 
of our flour is usually marketed in foreign countries. 

We sell direct to dealers in foreign countries and through brokers,. 
and direct to merchants and bakers in this country. 

The largest portion of our foreign business is in Great Britain. 

We have had a large trade in Habana until the abrogation of the 
reciprocity treaties in 1894. Since then our business has been compar- 
atively light, and, of course, lighter since the ravages of war over in 
Cuba. 

We have no difficulty in our business with Great Britain from the 
standpoint of duties, but on account of wheat going into France and 
Germany and other foreign countries duty free, and the large duty 
placed on flour, we are deprived of the trade in those countries. 

There has been but very little change in the output of our mills in 
the past six years. 



RECIPROCITY STATEMENTS. 321 

We Lave in a general way reduced the cost of production in tlie past 
five or six years. Wages, however, have not been materially reduced. 

Wheat has been very much lower the past three or four years than 
ever before since the war. 

Transportation by sea and by land averages cheaper than ever before 
in the last few years. 

The selling price of flour, on account of the price of wheat, has. been 
lower the past four or five years than at any time in the last forty years. 

The Spanish mills, since the abrogation of the reciprocity treaties, 
have been our chief competitors in the Ciiban markets. And the flour- 
ing mills in Great Britain, where the freight on wheat from tliis 
country to theirs is usually a little less than on flour, and where their 
cost of manufacturing is less by virtue of cheap labor, are our chief 
competitors. 

We believe the quality of flour in this country is superior to that 
made anywhere. 

It is believed that the product of the flouring mills of the United 
States has increased 15 to 20 per cent in the last five or six years. 

We believe that if all the merchant flouring mills in the United States 
were to run five months steadily they would make as much flour as 
could be absorbed by our domestic markets in a year, and in the bal- 
ance of the year, if the flouring mills should all run, we could very 
nearly feed all the mouths in Europe. 

We have been doing more or less business in the Cuban markets the 
past twenty-five years. Our brands have become well known, and for 
a few years previous to 1890, when the reciprocity treaties went into 
effect, we had built up a trade that took from 15,000 to 20,000 barrels a 
year. From 1890 to 1891 (when the reciprocity treaties were abrogated), 
or say between these two periods, our trade ran up to from G5,000 to 
75,000 barrels a year, and after the abrogation the trade dropped back 
to about 15,000 or 20,000 barrels per annum, and of course last year it 
has not been so much. Our trade relations and the credits over there 
have been exceedingly uncertain on account of the war. 

We believe that the reciprocity treaties of 1890 were exceedingly 
beneficial to our business and the milling business in general, and we 
believe it would be a great advantage if the old treaties were reestab- 
lished and new ones generally extended so far as articles are concerned 
that we produce. 



/Saxony Mills, 8t. Louis, Mo. 

The effect of recalling reciprocity arrangements with Spain was most 
disastrous to our interests, as that country immediately put a duty on 
flour going from the United States into Cuba, of some $1 or $5 per sack, 
which before that time had been $1 per sack. The city of St. Louis 
alone exported over 1,000,000 sacks of flour to Cuba every year when 
the reciprocity treaty was in effect. Now we doubt if 25,000 bags or 
sacks are sold every year from here. ■ We hope that a treaty can be 
made so that we can get our flour into Cuba again. 

England also threatens to put a duty on flour from this country, 
while wheat is going in free. France also has a high duty on flour, 
while wheat shipped from here into that country goes free, or only pays 
a nominal duty. We think there is no duty on it at all. We think 
steps should be taken so as to let our flour free into every country which 
exacts no duty on our wheat, as in that manner a good deal more labor 
H, Rep. 2203 21 



322 



RECIPROCITY STATEMENTS. 



can be given to our unemployed. The milling business in this country- 
has been in very bad shape the last couple of years, but we hope by 
proper legislation to improve it considerably. 



Acme Milling Company, Indianapolis, Ind. 

Manufacturers of winter-wheat flour. 

Now largely with the United Kingdom, and a small amount to Hol- 
land, Brazil, and Newfoundland. 

Canadian trade practically lost since increased duties that occurred 
several years ago. 

Cuban trade destroyed when their duty on flour was advanced. Our 
efforts to sell in Germany have been fruitless on account of duty imposed. 
France buys no flour from us since the discriminating duty was put on 
flour. Belgium is now lost to us because of the duty lately imposed. 
We can not possibly extend our trade in these countries until there is a 
modification of their tariffs. 

The removal of the custom duty would materially aid us. In fact, it 
would assure us of a fair proportion of the trade in all of these countries. 

Our sales in 1895 were 10 per cent larger than in 1889. 

Table showing variation in prices. 



Date. 



Patent. 


Extra 
fancy. 


Clear. 


Feed. 


$4.10 


$3.75 


$2.50 


$17. 00 


4.20 


3.90 


2.65 


17.25 


3.90 


3.55 


2.75 


13.65 


4.00 


3.55 


3.05 


10.50 


4.15 


3.72 


3.00 


9.25 


4.20 


3.75 


3.45 


9.00 


3.93 


3.46 


2.80 


9.30 


3.50 


3.16 


2.45 


9.40 


3.48 


3.14 


2.30 


11.00 



Wheat. 



March, 1888 . 
January, 1888 
October, 1887 
March, 1890 . 
January, 1890 
October, 1889 
March, 1896 . 
January, 1896 
October, 1896 



$0.83 
.83 
.73 
.73 
.70 
.71 
.72 
.65 
.65 



The foreign miller has some advantages in matter of transportation 
charges, as the cost of freighting wheat — the raw material — is less than 
that of flour. The advantage is not great, and the American miller 
has advantages to equalize. 

We can produce a better article and deliver it to the foreign markets 
at competitive prices when customs duties do not interfere. 

Yery favorable. Until then we had no Cuban or Brazilian trade. 
After the abrogation of the treaty with Cuba, our trade, which was begin- 
ning to assume considerable proportions, was completely destroyed. 

The flour export trade has been especially hurt by the discriminating 
tariff'; that is, the duty on flour being greater, proportionately, than on 
wheat. This is the case with a large part of the European countries. 
We have also found the competition of the French miller, in countries 
outside of France, quite annoying. As he is paid a bounty on the flour 
exported, he sells for a price actually less than cost. The poor quality 
of his flour stands in the way of his more seriously injuring our trade. 



Moseley & Motley Milling Company, Rochester, N. ¥. 

Reciprocity with some of the southern countries would be of great 
benefit to the millers. Trust you will do all you can to help the good, 
cause along. 



RECIPROCITY STATEMENTS. 323 

E. Goddard Flour Mill Company, St. Louis, Mo. 

The effect of the reciprocity treaties was favorable, and it made 
increased business for us. The effect of the repeal was bad. Take the 
islands of Cuba and Puerto Eico. That is enough to demonstrate the 
result. Our business has been curtailed to one of a retail character. 

The reciprocity principle properly worked with foreign nations should 
bring about good results for our manufactured products. 

That depends entirely on how good a bargain this country can make t- 
with other countries. Something will have to be done to extend the 
export trade of this country, or else our manufacturing interests will 
dwindle down to nothing. The cry will soon be high tariff unless we 
get relief. 



The Victoria Flour Mills, St. Louis. 

Acknowledging your two printed communications of ith instant, we 
do not believe we can add to the information laid before your committee 
by Mr. M. H. Davis, of Shelby, Ohio. 

We do believe in the principle of reciprocity as advocated by Presi- 
dent Arthur and Mr. Blaine, and that the policy would greatly enlarge 
the export flour business of our country, as also other lines. W e believe 
that the President, by approval of the Senate, should have power to 
negotiate on a give-and-take basis, and, where discrimination against 
any of our natural or manufactured products continues to be maintained 
by any foreign country, that the President should have power to embargo 
any or all products of such country until satisfactory mutual arrange- 
ments are agreed on. 

< ur principal cause of complaint is that certain foreign Governments, 
by imitating closely our high-protection practice, admit the raw mate- 
rial (our wheat) free, or at much lower tariff rates than they charge on 
our flour, thus excluding oar millers from competition with their home 
millers. This does not hurt our farmers directly, but it does hurt them 
to the extent that millers of our country, placed at such disadvantage, 
can not pay as much for wheat as if such foreign markets were evenly 
open to their flour. 

If Mr. Blaine ever said u Keep your tariff to trade on, 7 ' he struck the 
keynote, and the President should have the authority to trade in the 
interest of our agriculture and manufactures independent of general 
tariff legislation. 



The Goshen Milling Company, Goshen, Ind. 

2. Winter-wheat flour and feed. 

3. Eighty thousand dollars capital. About fifty persons employed. 
Annual product, 8550.000. 

4. Both. Abroad about 7 per cent. 

5. Direct to foreign dealers. 

G. Yes, we have, by correspondence, by personal visits, and by making 
good goods. We have done very well in the United Kingdom. 

7. Our trade in the United Kingdom has been very much injured by 
the peculiar laws of France, which permit French millers to import 
wheat, and then have more than the tariff refunded when the flour is 
exported to the United Kingdom. This virtually amounts to a bonus 
to them, and their competition has been the most bitter we have had the 



324 RECIPROCITY STATEMENTS. 

past year. We would suggest that a tariff be placed on French, goods 
imported to this country. 

8. Belgium has lately placed a tariff on Americau flour. 

9. We would say about 25 per cent. 

10. By putting in additional machinery we have increased our output, 
so that we now turn out 700 barrels daily, against 500 six years ago ; 
but we do not make as much money now as we did then. 

11. The cost of production is some less than six years ago. The trans- 
portation rates vary very much indeed. The ocean rates are regulated 
by the amount of tonnage going abroad. The rail lines just at present 
are not cutting rates, but they will do so, in our opinion, soon. The 
product to be exported should be carried at a lower rate than product 
intended for domestic consumption. 

12. As a rule, much lower. 

13. We meet with very bitter competition in the United Kingdom, 
which is our principal market, with the home millers and also the 
French millers. 

14. -The English miller has an advantage over us in being able to pur- 
chase his supplies for less money. As England is a free-trade country, 
clothing and nearly everything else is cheaper than in America, and the 
English miller is not obliged to pay so much for his labor or machinery, 
and he has a wide market from which to purchase his wheat. If Amer- 
ican wheat costs too much, he looks to Russia, India, or some other 
country, and we find that quite frequently the transportation compa- 
nies will carry wheat at a lower rate than they will flour, although they 
claim that they do not. 

15. Just at present English and French millers are underselling us 
very much, indeed, and we are assured by our customers abroad that they 
could not sell a barrel of American flour were it not for the notion that 
their people have that it is the best. 

16. It is increasing very much, indeed. The tendency seems to be 
toward building large mills of greater capacity. 

17. About one-half could be absorbed by domestic markets. The other 
half could not possibly be exported at a profit if all the mills in the 
United States were running at full capacity. Much wider markets than 
we now have would be absolutely necessary. 

18. The general effect of the reciprocity treaty made in 1890 was 
favorable to the export trade, and the effect of its repeal was bad. 

19. They sold for less money. 

20. As a rule, we favor a very moderate tariff for revenue only, for rea- 
sons too numerous to mention. It would create a better feeling toward 
us in the United Kingdom, our best customer. We, however, favor the 
reciprocity idea, so that we can hold such nations as France in line. 
We are discriminated against by their tariff laws. A general law 
authorizing the President to negotiate such reciprocity treaties when 
possible would, in our opinion, be a wise one. 



G. Hoffman & Son, Enterprise, Kans. 

2. Flour, mill products, and meal. 

3. Amount of capital, $200,000; number of persons employed, 20 • 
value of annual product, $300,000. 

4. Our market is both home and abroad— about one-fourth abroad. 

5. We sell direct to foreign dealers to some extent, while some of our 
goods go indirectly through commission houses at New York, 



RECIPROCITY STATEMENTS. 325 

0. We have made efforts to extend our foreign trade by personal 
visits to England, Belgium, and Holland, and by correspondence in 
those countries, as well as Denmark and France. We have also put 
ourselves into communication with the representatives of the above- 
mentioned countries, and have in various ways informed ourselves as to 
the wants of the tiade of the above-named countries. Our success has 
been fair, and we are having a fair export trade — not as large or as 
profitable as we should like, however. In fact, we have only been able 
to export flour when the local markets have been relatively low. 

7. There are many discriminations and obstacles in the laws and 
customs regulations of ship companies and foreign countries. The 
ship companies issue a bill of lading which does not hold them respon- 
sible for damage or loss on goods to the extent that equity would 
demand, and the American shipper is often subject to loss which he 
can not recover under the present bill of lading from the transportation 
companies, either inland or foreign, nor from the insurance companies. 
We would suggest the legal adoption of a foreign bill of lading that 
would protect the shipper. Various tariff laws and charges at ports 
are another obstruction that we believe can only be removed by intelli- 
gent cooperative action on the part of the various countries. 

8. The tariff has been raised on flour recently to the extent of 40 
cents (2 francs) per 220 pounds (100 kilos) in Belgium, to the almost 
entire destruction of a very satisfactory trade we had in Belgium. It 
seems that this law was brought about by the direct request of the 
Belgian millers, and it has had a very disastrous effect upon American 
flour trade in that country. France has also recently increased her 
duties upon flour to such an extent as to not only tirohibit the importa- 
tion of flour, but to enable the French millers (who are enabled to bring 
in wheat intended for export free) to successfully compete with Amer- 
ican flour in England and other European countries. It seems that 
the millers of France have been enabled to shape legislation very much 
in their favor. 

9. We believe that the removal or decided reduction of customs 
duties imposed by foreign nations upon flour and mill products would 
more than double the export trade on flour. This is evident when we 
consider the enormous amount of raw material (wheat) exported annu- 
ally from the United States. The entire export of breadstuff's from the 
United States should go in the shape of flour in the manufactured 
article, thereby giving the employment needed in its manufacture into 
the finished article to this country, as well as leaving the offal for 
feed for cattle and other farm animals. 

10. It has increased 70 per cent. 

11. Increase in wages, 50 per cent; increase in output, 70 per cent; 
decrease in inland transportation rates, 5 per cent; decrease in export 
transportation rates, 15 to 20 per cent; cost of raw material about 2 
per cent less. 

12. Ten to fifteen per cent lower. 

13. In Belgium we meet competition! from France and Kussia as 
well as the home mills, which since the imposition of the duties on 
flour, have practically driven American flours out of the market. In 
Holland we meet the millers of Hungary, Russia, France, and Denmark. 
In England we meet the millers of all flour-exporting countries. 

14. Our foreign competitors have no advantage over us in the cost of 
material. In transportation charges some of the millers have a decided 
advantage over American millers, but as a general proposition the Amer- 
ican millers, as far as cost of material and transportation is concerned, 
can successfully compete in the foreign markets. 



326 RECIPROCITY STATEMENTS. 

15. We can compete in quality and prices with foreign manufactur- 
ers, provided that customs duties must not be added to the price. 

16. It has increased. 

17. About one-half of the possible present output can be absorbed 
by the domestic market; more than double the average amount now 
exported would be exported if the mills could run to their full capacity. 

18. The general effect of the reciprocity treaty of 1890 seemed to be 
favorable, although in our line of manufacture we could not notice any 
definite effect, either of their passage or of their repeal. The general 
effect of the repeal was unfavorable. 

19. The effect of the repeal upon farm products seemed to be quite 
unfavorable. 

20. We favor the application of the reciprocity principles in future 
tariff legislation as the lesser of two evils, believing that reciprocity 
is better than tariff, but believing that free trade would be more bene- 
ficial than the imposition of customs duties upon imports, no matter 
how low. 



Tate, Midler & Co., Baltimore. 

2. Grain merchants. 

3. All countries in Europe. 

4. Yes. All countries in Europe; also in South America. 

5. There are serious discriminations and obstacles in the foreign coun- 
tries with which we trade to prevent the extension of our trade. In 
France, Germany, Italy, and Spain the duties are almost prohibitive, 
and were it not for the fact that they require a surplus for their own 
consumption commerce in grain would be impossible. We can not sug- 
gest any means by which these obstacles might be removed, as we are 
trading in articles which are raised in competition with us in all parts 
of the world. 

6. The duties on cereals have been successively raised in the last 
fifteen years, but have been stationary for about four years. 

7. We think that the reduction or removal of customs duties in those 
countries enumerated above, where they are excessively high at pres- 
ent, would inure to our benefit, as it would be impossible for European 
countries to compete with American producers. 

8. The volume of our business depends entirely upon the production 
of our country. The competition in the other parts of the world has 
grown immensely, but as grain is an article which must be sold when 
produced, it is only a question of price which will regulate the volume. 

9. Present prices are considerably lower than six years ago. We 
quote, for instance, December wheat in Chicago, December, 1895, G4^, 
and 80J in 1889. 

10. We do not know of any advantages our foreign competitors might 
have, as the cost of land, the transportation charges, the climate, and 
the nature of the soil are favorable, even more so in the United States 
than any other part of the globe. The cost of labor, we should think, 
however, is considerably higher. 

11. In quality we can compete with any country. Prices, of course, 
depend upon the crops. 

12. Reciprocity treaties were of no use whatever in our business. 
They benefited only those who trade with the West Indies and South 
America to any extent, and as the trade in breadstuffs witli those coun- 
tries is exceedingly small, and as Spain protects her colonies with dif- 



RECIPROCITY STATEMENTS. 327 

ferential duties, we do not think that in the line of grain and breadstuff's 
they have done any good to speak of. 

13. We do not think that the reciprocity principle will do us any good, 
and we fear complications with good customers in our line if undue 
advantages are accorded to others. 



The Blish Milling Company, Seymour, Ind. 

2. Flour and bran from winter wheat. 

3. (a) One hundred and fifty thousand dollars, (b) thirty-five persons, 
(c) six hundred thousand dollars. 

4. Crop year of 1892 — Domestic, 28 per cent; export, 72 per cent. 
Crop year of 1893— Domestic. 39 per cent; export, 61 per cent. Crop 
year of 1894 — Domestic, 55 per cent; export, 45 per cent. Six months 
of crop 1895 — Domestic, 67 J per cent; export, 32J -per cent. 

5. Direct to foreign dealers. 

G. Yes; by personal visits and the establishment of agencies and dis- 
tributing branches. With good success in England, Holland, Norway, 
and Sweden. W T ith poor success in Belgium, France, and Germany. 

7. The discriminating duty on manufactured wheat products as 
against the raw material restricts our foreign trade and prevents its 
extension. We believe the passage of the Kerr bill now pending in 
present Congress would in a short time remove the obstacles. 

8. The renewal of prohibitive tariffs by Cuba, Brazil, and other South 
American countries are recent changes affecting our business. 

9. We believe the removal of the discriminating duty on flour, as 
against wheat, by Continental and South American markets, would 
enable us to export 95 per cent of our entire flour product. 

10. For the crop year of 1889, 50,000 barrels of flour; 1894, 221,000 
barrels of flour, and for six months crop of 1895, 110,600 barrels of 
flour. 

11. The present expense for the manufacture of a barrel of flour is 
25 per cent less than six years ago; this includes wages and all manu- 
facturing expenses, but does not include the cost of raw material. 

13. In Norway, France, Germany, and Hungary; Cuba and Brazil; 
Spain; England, France, and English mills, with the products of ltus- 
sian and Indian wheat. 

14. To West Indian and South American markets, European com- 
petitors have a considerable advantage in the matter of transportation 
and the collection of drafts. 

15. In European countries where our products are established we 
find they hold much the preference with the people and that higher 
prices will generally be paid to secure the better qualities of American 
manufacture. 

16. Increased. 

17. We believe the domestic market will absorb from 65 to 75 per cent 
of the entire output of flour mills. 

18. The general effect of the reciprocity treaties of 1890 was very 
favorable to the flour industry, and their repeal entirely cut off' the 
exportation of flour to the countries interested. 

■ 19. Wheat and corn, and we presume other foreign products, were 
affected directly, as were the flour-mill products. 

20. We do favor the application of the reciprocity principle to future 
tariff' legislation, and believe this to be the true solution of the whole 



328 RECIPROCITY STATEMENTS. 

tariff" question. It is founded on common sense and justice to all, and 
should meet all objections both from the advocates of protection per se, 
and those who favor free trade. 



The Weekly Nor thiv ester n Miller. 

The Hon. Albert J. Hopkins, chairman of the Subcommittee on Eeci- 
procity and Commercial Treaties, sends out to the business public several 
circulars bearing" on the subject of reciprocity. A set of these has been 
received by the Northwestern Miller. The first of them is- a notice to 
the effect that those who may desire to appear before the subcommittee 
and give information as to the value of reciprocity and the result of 
its repeal may do so, and that hearings will begin Monday, March 16. 
Circular No. 2 desires the expressions and views of commercial and 
industrial organizations upon four points bearing on reciprocity, which 
are given. The last .circular is addressed to firms or corporations, and 
solicits replies to some twenty questions, all having to do with reci- 
procity and the effect of the repeal of this policy upon the business of 
the concern addressed. These inquiries have been forwarded to several 
hundred persons, firms, and corporations engaged in the manufacture 
of various products which are sold abroad, and we suppose that many 
of them have been sent to exporting millers. If so, we trust that the 
recipients will take time and trouble to reply to them, fully and posi- 
tively, and that they will give their unhesitating and vehement approval 
to the policy of reciprocity, and back it with the argument of facts 
drawn from experience. 

As the Northwestern Miller is not a manufacturing corporation, it 
can not very well answer the twenty questions asked by Mr. Hopkins, 
nor can it appear before the subcommittee in response to the invitation 
extended. Assuming, however, that this subcommittee is actually 
seeking for information, with a view to obtaining an intelligent under- 
standing of the needs of the country commercially, it will undertake to 
answer circular No. 2, which asks for views on four points, as follows : 

1. Was the effect of the reciprocity arrangements negotiated by the 
Government with certain foreign nations under the authority of the 
tariff act of 1890 favorable or unfavorable to the foreign commerce of 
the United States? 

2. What was the effect of their repeal by the tariff act of 1894? 

3. Is it expedient and advisable to apply the reciprocity principle to 
future tariff legislation and to enact a general law authorizing the 
President to negotiate reciprocity treaties with foreign nations so far as 
possible? 

4. What can be accomplished by diplomatic negotiations in extending 
the export trade of the United States? 

It is hardly necessary to ask anyone connected with the milling trade 
his opinion on these points, but we answer them as follows : 

1. The effect of the reciprocity arrangements referred to was favora- 
ble in the highest degree to the foreign commerce of the United States, 
and especially to that portion of it contributed by the millers. Beci- 
procity met with the hearty approval of all millers, irrespective of party. 
It was regarded as the most intelligent aid to our foreign trade ever 
given it, as a common-sense, businesslike policy, based on principles 
which Avere, without question, sound, logical, and thoroughly good. 
Practical experience under its provisions, made by practical business 



RECIPROCITY STATEMENTS. 329 

men, increased the favorable sentiment which its inauguration awoke. 
By its means our export trade in flour found new fields in which to 
expand and develop, and an enterprising and aggressive spirit was grad- 
ually extending our exports into countries hitherto unknown to ns. The 
milling industry had just begun to appreciate and profit by the reciprocal 
arrangements, when, by an utterly useless and seemingly unreasonable' 
move, Congress completely destroyed them. 

2. The effect of their repeal was extremely bad. It was a blow at our 
commerce, unexpected, unnecessary, and most ill advised. It resulted, 
in a serious loss of foreign trade, with no apparent gain from any quarter. 

3. It is both expedient and advisable to apply the reciprocity prin- 
ciple to future tariff legislation. This idea meets with the approval of 
millers generally, without reference to party. They regard it as a com- 
mon-sense and businesslike settlement of the tariff question, the true 
principle upon which our trade with foreign countries should be con- 
ducted. A general law authorizing the President to negotiate reci- 
procity treaties with foreign nations, as far as possible and as soon as 
possible, would, in our opinion, be of immense advantage to our export 
trade, and of vast benefit to our country generally. 

4. Much can be accomplished by diplomatic negotiations in extending 
our export trade. Countries now closed to us completely by prohibitory 
tariffs could unquestionably be opened by such negotiations. At pres- 
ent, so far as American flour is concerned, we have pushed our trade 
industriously and with enterprise and vigor in every land from which 
we are not barred by tariffs so high as to be practically prohibitory. 
Many markets opened to us by reciprocity have become closed by its 
repeal. These might be easily recovered by intelligent negotiation. 



Dayton Hedge Company, Dayton, Ohio. 

The Dayton Hedge Company are not doing any business now — times 
too dull. Cause, low prices of farm products. 



The Farm, Chattanooga, Tenn. 

The manufacture in which I am now interested and managing is not 
at all affected by tariff or reciprocity, except as these promote the 
general prosperity of the country. 

I am, however, heartily in favor of reciprocity arrangements with 
foreign countries on the lines of the McKinley law. 
Yours, truly, 

Willard Warner. 



T. B. Evans, Geneva, III. 

Since England has refused to receive any live stock from us, why 
not apply same rule to her? This country furnishes the best stock on 
the globe, and only importers want the fad of importation attached to 
their name to help victimize the unknown. Mne-tenths of t\\a bucks 
to be used next fall were contracted for a month ago in Canada, and at 
such juices we can not do anything only at mutton prices. Our exports 



330 RECIPROCITY STATEMENTS. 

of sheep to England for mutton have been growing fast, which helps 
out the ranchmen. The cnt off is a serious blow to them, while she in 
return sends her sheep frOin Canada here at mutton prices for breeders. 



The American Cranberry Trade Company. 

The American Cranberry. Trade Company, principal office, 116 War- 
ren street, New York, was organized some twenty years ago under the 
auspices of the American Cranberry Growers' Association for the special 
purpose of extending the market and demand for cranberries. 

For some eighteen years we worked with very limited capital and made 
very little progress; about a thousand bushels each year was about the 
maximum quantity shipped; these were taken mostly in Liverpool and 
London. There did not seem to be encouragement to continue and work 
on the same lines. 

Always having had faith in a foreign market for our fruit if the 
proper effort was made, I interested myself to secure the cooperation 
of the majority of the cranberry growers of the country in united effort 
to settle the question. Pledges were secured of a 3 per cent contribu- 
tion of the crops to aid in the enterprise. It so happened that the first 
season after securing these pledges the crop of the country reached its 
maximum height of about 1,000,000 bushels. Without the general 
knowledge that this effort was to be made abroad, prices must naturally 
have fallen very low, possibly below cost of production, but the fact 
that this effort was to be made and was being made abroad seemed to 
serve as a stimulus to the home market. And while I succeeded in 
placing about 5,000 bushels on the other side, the market at home 
remained remarkably steady and uniform during the whole season. 

If you care for the details of my work you will find it printed in the 
several reports of the proceedings of the American Cranberry Growers' 
Association, which I mail you under separate cover. 

The financial results of the enterprise did not show a profit, and by 
the majority it was not expected to; that was a secondary purpose in 
the matter. However, the net price realized was above the cost of pro- 
duction, and probably about equal to the net returns of the average 
producer. For the last two years we have had smaller crops, for which 
there has been a home market, and a majority in interest, either wisely 
or unwisely, determined to continue the enterprise on a conservative 
basis, shipping only such quantities as would be taken at fair prices. 
The result has been a sale each year of about 3,000 bushels, as against 
1,000 before the effort was made, and when you consider that this rep- 
resented about two months' work on my part, it would seem to me to 
demonstrate clearly that there is a large market there within our reach 
if we will only make the proper effort to secure it. Just at the present 
time I think cranberry growers are realizing that a mistake has been 
made in not having a representative abroad the present season. With 
a crop only two-thirds of what it was in 1883, cranberries are now a drug- 
in the market, and much lower in price than I have ever known them 
at this season of the year. 

It is said the Lord helps them that help themselves. We had hoped 
that after our effort to help ourselves the Government might do some- 
thing to aid our industry, which has become an important one. It 
takes lands that are practically valueless for any other purpose and 
makes them productive as garden spots. We have thousands upon 



RECIPROCITY STATEMENTS. 331 

thousands of acres still undeveloped of this class of laud that is only 
hindered from development by fear of overproduction. 

On our fruit exported to England there is no duty, but our exports 
to Canada are taxed heavily, and I am satisfied has cut off much of 
our trade in that direction. 



Sessingliaus Milling Company ', St. Louis, Mo. 

The effect of reciprocity treaties negotiated by the Government, under 
the tariff act of 1890, was most favorable to the trade of St. Louis, 
permitting' the exportation to foreign countries of increased quantity of 
flour, grain, agricultural implements, and other manufactured articles. 

The effect of the repeal was greatly to diminish and in some instances 
to absolutely prohibit shipments to those countries. 

In our judgment the reenacting of a reciprocity law authorizing the 
President to negotiate treaties with foreign countries would no doubt 
result in the extension of trade relations to an equal or greater extent 
than existed at the time of the reciprocity act. Diplomatic negotiations 
with foreign countries would serve to make known the advantage of 
this country as a source of supply of flour, grain, and manufactured 
articles, of which this country has a large surplus, and also bring to 
the knowledge of our people the market in which the articles needed 
here can be obtained to the best advantage. 



Star and Crescent Milling Company, Chicago. 

We desire to call your attention to the absolute necessity of some- 
effort being made to further the establishment of reciprocal treaties 
with the various countries, both in Europe and in the southern part of 
this hemisphere, in which in years past the American miller has found 
a market for his product. 

We may well say " in years past," for by the action of the tariff law 
of 1894 we have been either absolutely shut out of these markets, or if 
we sold to them at all, it has been only at ruinous prices and to dispose 
of the large surplus which it is impossible to dispose of on our home 
markets. 

The capacity of the American mills was increased sufficiently to 
enable them to cater to the trade, and now that they are deprived of 
it, it leaves us with a production entirely too great for the needs of this 
country. 

It is an industry that .has always been a support to and not a drag 
upon the resources of the country, and we are not now asking for pro- 
tection, but only a fair show in the competition with our foreign 
brethren. It is a fitting and a business-like resolve that, as far as pos- 
sible, the American miller should 'have at least an even show to mill 
the product of the American farmer, but with the discriminating duties 
levied against their product as compared with those levied upon the 
raw material by many European countries, and the absolutely prohib- 
itive duties of others, we have been unable to hold our own. If action 
is prompt this trade may be regained, but if delayed much longer it 
will be very hard to regain it. 

It is not a question of large against small profits for the American 
miller. 



332 RECIPROCITY STATEMENTS. 

We can not expect to do better than be placed on an even footing 
with onr foreign competitors, and that means a very moderate profit, 
but if something is not done to enable us to find a market for our sur- 
plus product abroad, then we will be confronted, as now, by a situation 
that means nothing less than disaster for all, and bankruptcy for many 
members of a branch of manufacturing which has certainly heretofore 
been a credit to the country. 

We wish again to call your earnest attention to the subject and to try 
and enlist your services. 

We have certainly had enough of trouble in business circles to make 
it obligatory on every good citizen to do everything in his power to 
relieve the situation. 



Aviston Milling Company, Aviston, III. 

Since the abrogation of the reciprocity treaties we millers have had 
a hard row to hoe. Formerly we exported one-half of our output to the 
South American countries, Cuba, and Puerto Rico, and now we either 
have to lie idle or throw our goods on the American market, which is 
already overcrowded. This is working a great hardship on thousands 
of people and will cost the millers of the United States millions of dol- 
lars, unless the Government takes a hand and gives us a chance for our 
just dues. We do not ask anything only to be let into other countries 
on an equal footing with others. Our goods and American pluck and 
brains will do the rest. Your earnest support for this bill is solicited, 
and if ever a chance is given will be reciprocated. 



Farwell & Rhines, Watertoion, J\ r . T. 

We are deeply interested in the question of reciprocity between this 
and other countries. 

The flour manufacturing industry of the United States — than which 
there is none more important — is seriously suffering through unjust dis- 
crimination in Europe and South America against American flour. The 
reciprocity arrangements under the tariff act of 1890, though given lit- 
tle time in which to show their value, resulted in a notable increase in 
exports of American breadstuff's. The repeal of this act, we believe, 
has contributed largely to the paralysis and dangerous demoralization 
of flour milling in this country. We need not cite statistics, with which 
you are doubtless more familiar than we. 

Other Governments jealously guard the interest of their flour manu- 
facturers, and seem to consider them of national importance. Why 
should not ours? We believe the bill known as H. R. 3212, recently 
referred to the Ways and Means Committee, will, if it becomes a law, 
be of incalculable benefit in this direction. This belief, and our anxiety 
for relief, is our apology for thus addressing you personally to ask you 
to do all you can to aid in the passage of this bill now. 



RECIPROCITY STATEMENTS. 333 

Anchor Mill Company, Superior, Wis. 

We respectfully desire to call your attention to the bill now before 
Congress known as H. K. 3212, which intends to restore reciprocity 
arrangements with foreign countries as previously existed under the 
tariff act of 1890. Ever since these arrangements were repealed by the 
tariff of 1S94 the flouring mills of this country have had cut off from 
them a very large amount of export trade, the loss of which has been 
the means of making the competition at home so keen that profits have 
entirely disappeared, and instead there is to-day hardly a mill in the 
country but what has a balance on the wrong side of the ledger. For 
the relief of this immense industry it is absolutely necessary that this 
bill be made law, as only through it, or through some measure having 
in end the same view, can this industry attain the strongly desired and 
much-needed relief. 



The A ew York Biscuit Company, Ifew Yorlc, X. Y. 

During the period in which the reciprocity act was in existence the 
sales in Cuba of the old Van Derveer & Holmes Company, now incor- 
porated in this concern, were fully 50 per cent better than they were 
previous to the institution of the reciprocity treaty. Since its abolition 
our sales in that island have materially decreased, but of course bad 
business and the present war are largely responsible for this. 

Personally, I am in favor of anything that will have a tendency to 
lower tariff in foreign countries, because it is only under such conditions 
that we can successfully trade with them. 



Thompson Milling Company, Lochport, X. Y. 

When the so-called McKinley tariff was enacted, with the reciprocity 
feature, which, if our memory serves us right, was done by the lamented 
Hon. James G. Blaine having this reciprocity clause included, it brought 
great relief to the millers of the United States, because there is always 
a greater demand for our raw material (the grain) than the manufac- 
tured article (the flour). It is unnecessary to call to your distinguished 
consideration what a very great benefit it would be to this country if 
the 100,000,000 bushels or more of wheat exported annually could be 
manufactured into flour first, instead of being sent abroad for foreign 
labor and mills to turn into flour. 



George Tomlinson & Son, Perry, X. Y. 

The awful depression in the milling business calls for relief. If it 
be in the power of Congress to do anything to relieve this terrible 
stagnation it ought to be done. 

We need the legislation during this session of Congress. Ruin is in 
sight. Millers are already in the breakers. If we are compelled to 
nwait a change of administration there is no telling the magnitude of 
the pending disaster. 



334 RECIPROCITY STATEMENTS. 

Cumberland Mills, Nashville, Term. 

This company is deeply interested in all that is being done toward 
bringing about the reciprocity measure now before the Ways and 
Means Committee of the House. This is a matter of vital importance 
to the milling interest of this country, and it is one that, as a business 
measure, ought to have immediate attention. 



Moseley & Motley Milling Company, Rochester, JSf. Y. 

The flour-manufacturing industry of this country (which is its greatest 
and most important industry), owing to conditions favorable to growth 
and progress, and relying upon an outlet for its product through export 
trade, has attained a producing capacity far in excess of the demand 
for domestic consumption. 

The tariff laws of most countries of the Eastern Hemisphere so dis- 
criminate against American flour in favor of our wheat (to the extent 
of absolute prohibition for flour in many instances), that although our 
flour mills are not being operated to more than half capacity, over 
100,000,000 bushels of wheat, or about one-fourth of the average crop 
of this country, are annually sent abroad to be milled and sold, not 
only in the country where ground, but also to come in competition with 
American flour in other countries. 

European Governments protect and foster the interests of their flour 
manufacturers, deeming their success of national importance. American 
millers must receive like assistance from this Government, or they can 
not live and prosper. 

The repeal of the act of 1890 by the tariff of 1894 proved a serious 
setback to the export trade, as is clearly demonstrated by statistics. 
The exports of flour alone to South American countries, which showed 
ah increase annually from 1891 to 1894, dropped off in one year (from 
1894 to 1895), from $3,253,176 to $2,726,558, and in Spanish-American 
countries the prohibitive duty imposed at once on American flour cut 
us off from all the valuable trade which had been acquired there under 
our reciprocity treaties. 

If immediate legislation is not had to restore the conditions enabling 
us to recover our trade in these foreign countries, it will be permanently 
lost. We are convinced that it may be recovered by the assurances of 
former customers, who desire to purchase our flour, if possible, and we 
are also confident that development of the same principles which have 
gained us a foothold in countries of the Western Hemisphere will x>ush 
flour made in the United States into all markets of the world. 



Miles & Son, Frankfort, Ky. 

We do not consider this a party question, but the millers are in such 
sore need of some relief along this line that they would certainly feel, 
as a class, very kindly toward whichever party should be instrumental 
in securing relief that would enable them to do a profitable business. 

The millers felt very much encouraged with the prospect of large 
markets in Cuba and South America while the reciprocity measuies 
were in force, but they did not remain in force long enough for the mills 



RECIPROCITY STATEMENTS. 335 

as a class to become established in those markets. We are satisfied 
that, should the proper measures be enacted, the mills of this country 
could and would grind all the wheat raised here, thus giving employ- 
ment to large numbers of our own people. We desire especially to call 
your attention to the competition which we are compelled to meet from 
the French millers. Their tariff acts, practically, as a bounty on all 
flour exported. Being protected in their home markets, they can sell 
there for high prices. With a bounty on exports, they can sell in foreign 
markets lower than others. They have been selling Hour in Great 
Britain for less money than any American miller can afford to sell. 



Swartley Bros. & Co., Doylestoivn, Pa. 

As members of the Pennsylvania Millers' State Association, we have 
been requested to write you in supporting II. R. 3212, a bill urging the 
establishing of the reciprocity act, set forth in an appeal of Mr. Barry, 
secretary, of Milwaukee, Wis. Milling in our State has assumed a ter- 
rible state of affairs, and anything that can be done on your part would 
undoubtedly relieve the millers of their burdensome position in the 
milling business. 



Dauphin Roller Flouring Mills, Dauphin, Pa. 

To save the milling industry of our country it is necessary to have 
some different legislation than that which is in force. Since Mr. Blaine's 
ideas of reciprocity have been abandoned, milling has been rotten. 
Will you do what you can for the restoration of these treaties ? By 
doing so you will confer prosperity to the milling industry and all who 
are dependent thereon. 



Ballard cO Ballard Company, Louisville, Ky. 

Under the reciprocity treaties negotiated by ex- Secretary Blaine, the 
flour industry was in quite a satisfactory shape, but the action of Con- 
gress in passing the Wilson bill has put us in the hole. 



Millbourne Mills Company, Philadelphia, Pa. 

We earnestly urge favorable and speedy action at the present session 
of Congress, as the relief it contemplates would be the greatest possi- 
ble boon to the fraternity in which unfortunately we are deeply inter- 
ested; 



The Isaae Hairier Company, Fostoria, Ohio. 

While it was in effect in connection with the McKinley tariff bill this 
mill enjoyed a large trade with the island of Cuba, and particularly in 
Habana. Since reciprocity has been repealed, we have practically lost 
all of this trade, which amounted to about 75,000 barrels per year to 



336 RECIPROCITY STATEMENTS. 

this mill alone. The total consumption of winter wheat flours in. Cuba 
was upward of 1,000,000 barrels per year. Nearly all of this has now 
been lost to the United States and has gone back to Spain, which 
country has since been supplying* the island. We urge upon you the 
necessity of bringing" this bill to vote, and we also urge upon you to use 
your very best efforts for its adoption. 



TJie Cleveland Milling Company, Limited, Cleveland, Ohio. 

2. Flour from winter wheat. 

3. Capital. $325,000 • number of persons employed, 85 ; value of annual 
output, $1,000,000. 

4. We market about 50 per cent of our output in the United States 
and 50 per cent abroad. 

5. We sell direct to foreign dealers. 

6. W r e have sent agents to foreign countries, and corresponded with 
buyers in those countries for the purpose of increasing our business 
abroad, and were meeting with good success until the abrogation of 
reciprocity relations with such countries compelled us to desist in our 
efforts. 

7. France, Germany, Belgium, South America, and Cuba have within 
recent years enacted laws which have either shut out American flour or 
subjected it to such customs regulations as to lessen the volume of 
exports and render the shipment of flour to those countries unprofitable. 
We would suggest that a return to reciprocity relations and retaliatory 
measures, similar to those prescribed by the McKinley bill, and such as 
are incorporated in the Kerr bill (H. E. 3212), now pending, or about to 
be brought before the House of representatives, will materially aid in 
bringing back this trade, and thereby greatly increase the sale of 
American flour abroad. 

8. Belgium has recently made a change in customs laws discriminating 
against American flour in favor of American wheat. France and Ger- 
many enacted laws several months previous to Belgium on the same 
lines. 

9. The removal or reduction of customs duties imposed by foreign 
nations upon the merchandise in which we deal would, no doubt, increase 
our business abroad by at least 50 per cent. 

10. Our output is now about 75 per cent of what it was six years ago. 

11. Six years ago wheat was worth about 85 cents per bushel at our 
mill. To-day it is worth about 70 cents. Wages are practically the 
same now as then; but have been obliged to curtail expenses, and 
thereby reduce our force of employees. Transportation rates by sea and 
land are somewhat less than six years ago, due to the fact that so little 
American flour is now being exported that steamship companies' capac- 
ity is greatly in excess of the freight moving, hence competition for the 
small quantity that is to be moved. 

12. Flour is now selling from 70 cents to $1 per barrel less than six 
years ago. 

13. We have during the past year met with ruinous competition in 
Great Britain markets, especially in London and Liverpool, from the 
inroads of foreign flour, particularly that made in France, where the 
millers have a system of rebates which enables them to practically 
import wheat without cost of duty if a certain quantity of flour is ex- 
ported. Up to January 1, 1895, we sold about 35,000 barrels of flour 



RECIPROCITY STATEMENTS. 337 

in the London market. From January 1, 1895, to January 1, 1896, we 
have not been able to sell a barrel in that market. 

14. Foreign competitors have not much the advantage of us in trans- 
portation charges, nor have they any advantage in the cost of manu- 
facture. It appears to be simply a matter of duties. 

15. We can, without doubt, place our flour in competition with foreign 
manufacturers in quality and prices if American flour is not discrim- 
inated against in favor of wheat. 

16. We do not believe the total product of flour in the United States 
has decreased much, if any, during the last six years. Reference to the 
tables of export of American flour, to which you no doubt have access, 
will show you plainly to what extent the possible output in the line of 
flour manufacture can be increased under suitable laws and reciprocity 
relations. 

17. Flour exported from the United States for 1894 was 16,859,553 
barrels; exports of flour for 1890 equalled 12,082,691 barrels, showing a 
gain in exports during the short time reciprocity relations were estab- 
lished of 4,776,842 barrels. The output of flour mills in this country in 
the above-named years was about 55,000,000 barrels yearly. 

18. Reciprocity treaties made in 1890 favored the export trade of 
flour very much, and their repeal tore down all the effort that had been 
expended to build up trade in European countries. 

19. The effect upon farm products is effectively shown by statistics 
issued by the Agricultural Department at Washington, giving the 
value of wheat to farmers during the period that reciprocity relations 
were in vogue and since their repeal. 

20. We urgently favor the application of the reciprocity principle to 
future tariff legislation, and the enactment of a law authorizing the 
President to negotiate reciprocity treaties with both the European and 
American nations so far as possible. 



Commercial Milling Company, Detroit, Mich. 

The milling industry is sadly demoralized for the lack of broader 
markets. There is enough milling capacity in the United States to sup- 
ply the domestic trade by running three months out of the year. You 
can therefore readily see that reciprocity is what this industry sadly 
needs. We are all anxious for wider markets. 

Our representatives by passing this bill will give us these markets, 
and we see no reason why the desired relief should not be extended to 
the milling industry, and it would be a benefit to the whole country and 
will be indorsed by the business community unanimously. 

It will give the farmer better prices for his wheat and a quicker and 
more active market, and at the same time be u a feather in the cap" for 
the politician that will bring this about. 



D. R. Barber & Son, Minneapolis, Minn. 

We can not advance any new arguments why we should have recip- 
rocal trade with foreign countries that you do not know, but we can 
assure you that it is of vital importance to our business, and we beg that 
you lend your powerful influence to the passage of the bill H. R. 3212. 
H. Rep. 2263 22 



338 RECIPROCITY STATEMENTS. 

Regina Flour Mill Company, St. Louis. 

2. Manufacturing flour. 

3. Capital, $100,000; in actual use, $200,000. Employ 43 persons. 
Value of annual product varies from $400,000 to $600,000. 

4. Our market is both at home and abroad; proportion — home, 85 
per cent; foreign, 15 per cent. 

5. We sell direct to foreign dealers. 

6. We have had agents traveling in Europe and the West Indies, 
supplemented by circulars and correspondence. 

7. We are well aware of discriminations and obstacles in the laws of 
foreign countries that hinder, restrict, or prevent our trading with 
them. One way to remove them is by negotiating special treaties. 

8. France has put discriminating duties on flour far in excess of the 
duties on wheat. By their rulings on drawbacks they practically give a 
material bounty on flour exrjorts, enabling French millers to compete 
successfully with American millers in foreign markets. Thus we are 
not only shut out of French markets, but we are unfairly handicapped 
in the competition in other foreign markets. Belgium, a short time 
ago, also put a discriminating duty on flour compared to wheat. Swe- 
den and Norway have done the same recently. The great advance in 
duty on flour in Cuba compared to that on flour imported from Spain 
immediately checked our exports. 

9. The removal or reduction of duties on our flour by foreign coun- 
tries would undoubtedly facilitate the extension of our export business. 

10. Our output is but 50 per cent of what it was six years ago, due 
partly to the unfavorable customs of foreign nations, partly to unrjrofit- 
able prices due to home competition, which competition has become 
more severe because of reduced exports, and also because of the insane 
increase in number of mills, especially at country points. 

11. Cost of production is somewhat less now than six years ago, 
mainly in the item of cost of wheat. Six years ago No. 2 red wheat 
sold here at 78 to 79 cents. Today it sells at 70 cents, an excessive 
price compared to value of spring wheat. The cause is the failure of 
the winter wheat crop last season. Coal is about 1 cent per bushel 
less. Wages are hardly less. Transportation to seaboard is about 15 
per cent less. 

12. Flour is fully 60 cents per barrel lower than six years ago. 

13. French flour competes actively and successfully with ours in 
Great Britain, Belgium, and Holland. 

14. The advantage of French millers is in the practical bounty they 
get, in lower wages to operatives, and in quicker delivery of flour to 
buyer. 

15. Under untrammeled conditions we can compete with foreign 
manufacturers so as to supply the importing countries with most of the 
flour they need above their own wheat production. 

16. Through the increase of milling capacity, especially in the North- 
west, the flour production of this country has increased. 

17. Our home consumption of flour is estimated to be about equal to 
315,000,000 bushels wheat per year. The natural surplus for export 
would be all of the crop in excess of this quantity. Our mills could 
grind it all if they had untrammeled foreign markets opened to them. 

18. The general effect of reciprocity treaties was most marked on our 
flour exports, because in this line we excel in cheapness and quality, 
no other country at this time having equal natural and acquired advan- 
tages as we have now — excellent quality of wheat, most perfected mills, 



RECIPROCITY STATEMENTS. 339 

ready means of transportation by rail or water at comparatively mod- 
erate prices. 

19. Answered in preceding paragraph. 

20. We do most decidedly favor reciprocity treaties as being the part 
of practical politics. We do not yet live in an ideal age, when nations 
will concede to each other all their natural advantages, but rather we 
see that each one tries to get the advantage over the other, the same as 
private parties or individuals do in their private dealings. 



Ruegely Milling Company, Nashville, 111. 

Hoping we will not intrude too much upon your valuable time, Ave 
would beg to call your attention to H. R. bill No. 3212, now before your 
honorable committee. As exporters of flour we are considerably 
interested in the passage of this bill, which we hope will take place at 
an early date. It seems to us that it is beyond question that the pas- 
sage of this bill will prove of vast benefit to the business interests of 
our whole country. It is also an incontrovertible fact that the repeal 
of the reciprocity treaties of 1890 has proven very harmful to American 
industries. The statistics, evidence, and statements furnished your 
committee conclusively prove this, and our own experience as exporters 
of flour to Europe and the West Indies compels us to fully indorse all 
statements furnished the committee by the friends of reciprocity. 

This country exports annually about one-fourth of its wheat crop, 
owing to the tariff laws of nearly all European countries, which dis- 
criminate so much against American flour in favor of American wheat. 

If no such discrimination existed this wheat could be ground by 
American mills (which are running but half capacity), thus enhancing 
the price of wheat and giving employment to large numbers of our now 
idle people. But under existing conditions this fourth of our wheat 
is sent abroad, there to be ground and sold, not only in the country 
where milled, but also to come into competition with American flour in 
other countries. 

Our own export trade to Cuba, for instance, which had assumed hand- 
some proportions and promised to increase rapidly, is literally wiped 
out under present conditions, while that to European markets has also 
suffered considerably. However, we deem it unnecessary to present 
further arguments. You have ample evidence before the committee 
that the repeal of the reciprocity treaties worked great harm to Ameri- 
can industries, and also that the past has taught us that the enactment 
of reciprocity treaties has proven of great benefit to the whole country. 
The principle of reciprocity will commend itself to everyone having the 
best interests of his country at heart. 



Taylor Brothers Milling Company, Quincy, III. 

"We can hardly hope to add anything of value to what has already 
been said, but it is our belief the millers are not asking for favors at 
the hands of our Government, but simply for such legislation as is dic- 
tated by sound business principles. The great advantages secured by 
the act of 1890 can readily be proven by Government "statistics, and, 
we believe, are unquestioned; also, the loss of these benefits can be 



340 RECIPROCITY STATEMENTS. 

equally well proven by statistics of exports since the passage of tariff 
bill of 1894. We believe that our trade in foreign countries, which has 
been lost through discriminating tariffs in favor of wheat, and practi- 
cally prohibiting flour, can all be regained and largely increased if 
proper legislation is had without delay, but if this does not come soon 
our trade in these foreign countries will be permanently lost. 

European Governments appear to be doing all that they can to pro- 
tect and encourage the interests of their flour manufacturers, as their 
success is certainly a matter of national importance, and American 
millers must receive assistance of a similar nature from our Government, 
or the trade can not hope for prosperity. 

We believe the legislation asked for by the millers is only such as is 
dictated by sound business principles, but it is feared that owing to the 
present Congress being so reluctant to touch upon tariff legislation, the 
bill will simply be referred to the next session and action indefinitely 
postponed. This means we shall not get any relief for two years or 
more. We need this relief at once, especially at this time, in order that 
the benefits may be obtained from the coming crop of wheat. Other- 
wise, many more milling plants will be obliged to suspend operation and 
financial losses will continue to multiply. 



Bernhard Stern & Sou, Milwaukee, Wis. 

There should not be any doubt at all by anybody conversant with 
pur state of industry at the present time that we must insist on foreign 
countries treating us on a more equitable and just basis. While it is 
certainly of great moment to make efforts to increase our exports to 
South American sections, yet this country's attention must be directed 
more to western Europe, with its more dense, intelligent, and indus- 
trial population, in a temperate climate, where the consumption of all 
necessaries of life is by far larger per capita than South American 
countries, with their hot climate and principally uncivilized population, 
whose wants are of the most simple character. 

Europe maintains now industrially a hostile position toward our 
country. They are not producing enough food to get along without us, 
and purchase our raw material, but favor the flour manufacturers of 
their own country by much higher tariffs on flour than on wheat, thus 
shutting out our manufactured article. The most unjust treatment is 
exercised through legislation by France, which taxes, in favor of the 
flour industry, their own people, through a very high tax on flour and 
a by far smaller tax on wheat; and not only this, France, to encourage 
their flour manufacturers still more, gives a rebate on flour exported 
and made irom foreign wheats, which gives the French millers a decided 
advantage over the millers of the United States and takes away a great 
deal of our trade with Great Britain, Belgium, and the Netherlands, 
which Ave controlled heretofore almost exclusively as far as the importa- 
tion of flour is concerned. In this way France is building up their own 
mills and pulling down ours. We should think that we are strong 
enough to demand from European countries more equitable international 
treatment. 

Our country is undergoing a change in its character. Having been 
formerly principally an agricultural nation, it is now tending to a large 
extent to become an industrial nation, and with this change the duty 
of our Government is to protect our large laboring classes. We are 



RECIPROCITY STATEMENTS. 341 

importing large amounts from Europe, of which the larger part is labor 
value, while we are exporting in exchange to the same countries mostly 
raw materials with very little labor, and it is evident if we do not insist 
on European government regulation of our commercial exchanges on a 
labor-value basis that our country must finally suffer. 

Regarding the milling industry in this country specifically, we ought 
to export, in the shape of Hour, almost all of the 100,000,000 bushels of 
wheat now exported as raw material. We have more than the neces- 
sary capacity, and are able on account of our ingenious machinery ancl 
methods of doing our business, to compete with any other nation, not- 
withstanding that the rate of freight on wheat from this country to 
Europe is always less than on flour, but the millers can overcome this 
disadvantage if they are not obstructed by the greater one of prohib- 
itive legislation. 

We wish respectfully to extend to your honor a most urgent appeal 
to give your valuable support to the passage of the above mentioned 
bill, which we think covers all the necessary requirements, and by no 
means to allow this present session of Congress to adjourn before relief 
is provided for our exporting manufactories. 



Daisy Boiler Mill Company, Superior, Wis. 

We appeal to you for early action, at this session of Congress, for the 
relief of the milling and other manufacturing interests of the country 
by passage of bill H. R. 3212, or a measure of like character. The res- 
toration of reciprocity treaties between this and foreign countries is not 
a question of politics. The advantages that were secured by the act 
of 1890 are unquestioned, and are attested by statistics. The loss of 
these benefits by its repeal is likewise plainly demonstrated by refer- 
ence to the Government reports of exports since the tariff enactment 
of 1894. We need immediate action on this matter, and if we are 
obliged to wait two years longer before we can attempt to regain the 
export trade that we have lost many milling plants will have to sus- 
pend operation. 

We trust that you will give this matter your very serious considera- 
tion, as it is of vital importance to the manufacture of flour in this 
country. 



Sparlcs Milling Company, Alton, III. 

We appeal to you in behalf of ourselves and hundreds of millers 
vitally interested in reciprocity measures with Spanish- American coun- 
tries. The flour milling business in the United States to-day is demor- 
alized, and in a crippled condition. The overproduction is alarming, 
and competition in Great Britain, Belgium, and Holland, our principal 
export markets, is getting more severe all the time. We need a broader 
market. We must have it or many honest, old, and well-established 
firms will fail. The McKinley tariff helped us on account of the reci- 
procity clause attached to it. During the two years it continued our 
mill alone sold a quarter of a million dollars worth of flour to Cuba. 
It was our best trade because it was the most profitable, and it was 
growing. Millers were stimulated to enlarge their capacities on account 
of this increased business. The blow that destroyed it has struck us 



342 RECIPROCITY STATEMENTS. 

hard. We appeal to you as being the leading power in the House of 
Representatives, and hope, so far as it lies within your power, you will 
favor legislation looking toward reciprocity treaties with Spanish- 
American countries. 

We sell also, in a small way, in Mcaragua, Venezuela, Honduras, and 
Costa Eica, but the trade can never be large, for the reason that their 
duties are fearfully high and collections difficult to make. With lower 
duties on flour in those countries our trade would be increased. Busi- 
ness makes banks, and we could, in time, transact a safe business, as we 
did in Cuba. The value of manufactured flour in the United States 
exceeds that of any other manufacturing industry, not excepting steel 
or iron. Unlike most industries, it is not combined in large corporations 
or trusts. This is an element of weakness with us and not one of 
strength. However, when it comes to voting, we vote strong, and we 
generally vote the right way. We believe that four- fifths of the millers 
in the United States are Republicans straight, but we do not wish to 
talk politics in this letter. We appeal to you in behalf of the strug- 
gling millers, every one of whom would be benefited by reciprocity trea- 
ties favorable toward the exporting of our flour. 

It is true that the big millers do the big part of the business, but it 
takes that much away from the country and gives the smallest miller a 
better home market. We do not give you a lot of statistics. These 
have been collected and placed before the proper officials in the House. 
We do, however, solicit your interest in our behalf and thank you in 
advance, most cordially, for whatever you may do to assist us in our 
great struggle for the improvement of our condition. 



The Fryburg Roller Mills, Fryburg, Pa. 

The flour manufacturing industry of this country (which is its great- 
est and most important industry), owing to conditions favorable to 
growth and progress, and relying upon an outlet for its product through 
export trade, has attained a producing capacity far in excess of the 
demand for domestic consumption. European Governments protect 
and foster the interests of their flour manufacturers, deeming their suc- 
cess of national importance. American millers must receive like assist- 
ance from this Government or they can not live and prosper. The repeal 
of the act of 1890 by the tariff of 1894 proved a serious setback to this 
trade, as is clearly demonstrated by statistics. If immediate legisla- 
tion is not had to restore the conditions enabling us to recover our trade 
in these foreign countries, it will be permanently lost. Therefore I pray 
you to use your influence, urging the necessity of early action, at this 
session of Congress, for the relief of the milling and other manufacturing 
interests of the country by passage of the bill H. R. 3212, or a measure 
of like character. 



Lexington Roller Mills Company, Lexington, Ky. 

We are interested in the bill known as H. R. 3212, its object being 
the reenactment of the reciprocity laws for various articles, and we are 
especially anxious that it should be passed so as to apply to flour. We 
are in the milling business and have felt the effects of the trade being 



RECIPROCITY STATEMENTS. 343 

cut off from the mills who were doing the business with foreign countries 
while the law was in force. We do some export business, but so far it 
has been confined to Great Britain and Ireland, and did not come directly 
in contact with the countries where the reciprocity clause applied. 
However, since its abolition quite a number of the mills who were 
interested in that business have given more attention to the local or 
American trade, and we have felt the effect of this competition in the 
sales we have made in the Southern territory. 

We believe a reenactinent of the reciprocity tariff would enable tlve 
mills to get more tlour out of the country and in this way help the 
entire milling business, both large and small mills in like proportion. 



Kauffman Milling Company, St. Louis, Mo, 

2. Manufacturing Hour. 

3. $200,000. 

4. About $2,000,000. 

5. Direct to foreign dealers. 

6. Yes. By personally visiting the foreign trade. Met with success 
only in the United Kingdom. Other countries (excepting Holland and 
Norway) have higher duties on flour than on wheat, which prohibits 
favorable arrangements. 

7. Yes. Spain, France, and Germany have higher duties on flour 
than on wheat. No remedy unless by reciprocal treaties or retaliatory 
legislation. 

8. None, except in Belgium, which country has followed in the foot- 
steps of France and Germany. 

9. Difficult to answer. In 1891, when France temporarily reduced 
flour duties to a parity with wheat, we sold in sixty days, during the 
period of such reduction, $300,000 worth of flour. We have made no 
sales in that country since the duties on flour have been restored. 

10. Owing to crop failure in this section, this year is not a fair crite- 
rion. Last year we made about 75 per cent of our output of six years 
ago. 

11. W r ages about the same; cost of raw material about one-third 
less; transportation 10 to 20 per cent cheaper 

12. Far less satisfactory. Profits have been small or nil. 

13. None in this country. 

14. None where import duties are on a parity (on wheat and flour), 
except freight is cheaper on wheat than flour, and foreign labor paid 
lower wages. 

15. Our quality is equal or superior. Our prices are a shade higher. 
10. Have no reliable figures at hand. 

17. Have no reliable data, but estimate 70 per cent domestic and 30 
per cent for export. 

18. Favorable. First month after said duties went into effect we sold 
in Cuba and Puerto Rico $80,000 worth of our product. After that date 
sales averaged about $25,000 per month during the time treaty was in 
force. Previous to the treaty sales averaged $3,000 to $1,000 per 
month, and since the repeal sales averaged $2,000 to $3,000 per month. 

19. Have no accurate knowledge, except that agricultural products 
have declined in value during the period supervening since repeal of 
reciprocity. 

20. Yes; most emphatically. 



344 RECIPROCITY STATEMENTS. 

Have endeavored to answer questions propounded as clearly as possi- 
ble, using our own business as a basis. Will state that we are greatly in 
favor of reciprocal treaties, not with Spanish- American countries alone, 
but with those European countries which, at the present time, place 
discriminating duties on flour as compared with wheat, so that, while 
they import our raw material, they exclude our manufactured article. 



The Northwestern Elevator and Mill Company, Toledo, Ohio. 

2. Manufacturers of flour and feed from winter wheat. 

3. Capital, $350,000. Number of men employed, 80. Value of 
product in 1895, $986,390. 

4. Both at home and abroad. 

5. We sell direct to our own correspondents, on through bills of 
lading. 

6. Yes; by personal visitation in the United Kingdom, France, and 
Holland; also by correspondence in Belgium, Germany, Norway, Swe- 
den, and Cuba. 

We have conducted a regular trade in the United Kingdom since 
1891, and have a regular trade in that quarter now, except that it has 
been restricted this past year on account of the relatively high price of 
winter wheat, due to crop failure in America; and especially in the 
south of England has the restriction of our trade been intensified on 
account of a bounty arrangement which the French millers have enjoyed 
from the French Government, for about a year, by which they have 
been able to undersell us enough in the south of England to embarrass 
us in the matter of competition. 

In 1891 we sold some flour in France, but prompt action early in 1892 
by the French Government for the benefit of the French millers barred 
us out, and we have not been able to sell any flour in France since. In 
1893, 1894, and part of 1895 we had a growing trade in Belgium, but 
action taken by the Belgian Government last year, by which a duty 
was imposed upon foreign flour, while foreign wheat was admitted free, 
put a complete stop to our trade in that quarter. 

Although flour is admitted into Holland free of duty, we have had no 
trade in that country since early last year. This has been due partly 
to the high price of winter wheat as compared with spring wheat and 
partly to the influence of the French bounty system. Holland con- 
sumes the cheaper grades of flour almost entirely, and her imports the 
past year have been confined entirely to cheap spring wheat flours from 
the Northwest and cheap French flours from France. 

The French bounty system would work against us some in Belgium 
this year, even if there were no discriminating duty on flour into Belgium, 
but not enough to bar us out, as Belgium prefers fairly good grades of 
flour, and will give the preference to American red winter wheat flour 
on account of its superior quality, other things being equal. 

We have sold some flour in Germany, but not as a regular thing, as 
the duty on flour is so much greater than the duty on wheat that we 
can not compete with the home miller, except in extreme cases, such as 
temporary abnormal demand due to domestic shortage. 

7. We are aware of obstacles in the way of an extension of trade to 
all countries except the United Kingdom and Holland. In the United 
Kingdom and Holland there are no obstacles imposed by the govern- 
ments of those countries. The French bounty system, however, works 



RECIPROCITY STATEMENTS. 345 

strongly against us in holding trade even in these countries. All other 
countries impose a relatively higher import duty on flour than on wheat, 
and to that extent we are barred out from doing business in all foreign 
countries except the United Kingdom and Holland. 

The only suggestion we can make is to encourage reciprocal trade, 
relations. This suggestion does not imply that we are in favor of any 
measure involving retaliation. We are in favor of empowering our 
Administration to effect reciprocal treaties, but are not in favor of 
empowering our Administration to inaugurate and put in force any > 
retaliatory measure. In other words, we believe commercial conquest 
is desirable when it can be carried on by friendly diplomacy, but we 
believe commercial warfare between nations, involving arbitrary retal- 
iatory measures, would be worse for the business community than pow- 
der and ball warfare. 

The introduction and adaptation of the reciprocity idea should be 
conservative and sure, and effected largely along diplomatic lines. You 
can not adopt and introduce reciprocity one year and then revoke it 
the next. In that event business would be unsettled and no one in the 
trade could tell what to expect from one year to another. 

8. Belgium, France, Germany, Norway, and Sweden have all manipu- 
lated their import duties on flour and wheat during the past five years 
in such a way as to practically prohibit us from selling any flour within 
their borders. 

The repeal of the reciprocity clause of the so-called McKinley tariff 
act greatly restricted the ability of every American to sell flour in the 
West Indies and Brazil. It was fortunate for the flour millers of Amer- 
ica that this law was in force for so short a time in view of its repeal. 

If the milling business of the United States had become well estab- 
lished on the basis of the reciprocity act and it had then been repealed 
it would have resulted in a panic and bankruptcy among American 
millers that would have taken them many years to recover from. 

9. Many contingencies are involved in No. 9, such as the scarcity 
or abundance of the raw material from year to year in our own country, 
or the scarcity or abundance of the same from year to year in the 
country in which we were seeking trade. Other contingencies might 
be cited. We can say with positiveness, however, that with the import 
duty the same on both wheat and flour into any foreign country we 
could build up and hold from year to year sufficient trade in such a 
country to do what we would call a regular and established business 
in that country; some years more and some years less, the same being 
dependent on the natural contingencies. 

10. In 1895, 235,103 barrels of flour; 1889, 235,370 barrels of flour. 

11. Expenses, 1895 and 1889, on almost an identical production, as 
follows: 1895, $72,380; 1889, $69,522. The above does not include cost 
of raw material, which figures we have not at hand. 

13. Partly answered in No. 6. In addition, will say we meet with 
competition of the home millers of the countries to which we export, 
also from Austro-Hungary. Our principal competition, however, in the 
United Kingdom is from our own neighbor millers in America. 

14. At present the French millers enjoy the benefit of an export 
bounty cited above ; also the home manufacturer has the advantage over 
us by so much as the difference between the duty on the raw material 
and the duty on the manufactured article. 

There is a plan being developed in Eussia whereby the aid of the 
Bussian Government is to be secured for the transformation of the Rus- 
sian exjjort trade in wheat from the raw material to that of the manu- 



346 RECIPROCITY STATEMENTS. 

factured article. Every year this scheme is drawing nearer and nearer 
to the point of practical issue, and in a very short time the millers of 
western Europe and the American export millers will have to encounter 
a competition from that source which will tax them to their utmost to 
meet. 

15. We can compete in quality: (a) Because America's system of 
raising and gathering grain is the best in the world, thus giving us the 
best raw material in the world; (b) because our skill in manipulating 
the raw material is the best in the world; (c) because our machinery is 
the best and most economical in the world — due to Yankee ingenuity. 
Much of the benefit derived from the above advantages are paid out in 
relatively higher wages, and if they were not we could not with these 
advantages overcome the relatively higher duty now imposed upon the 
manufactured article by nearly all foreign countries. 

16. The capacity to produce has increased, not from any marked 
increased demand for flour, but because of a large increase in the mill- 
ing capacity at the head of Lake Superior, due very largely to specula- 
tive causes. This has all occurred during the past six or seven years. 
The effect of this speculative development at the head of Lake Superior 
is more than represented by the milling capacity at that point, because 
the building of these mills, large in themselves, forced other millers in 
other localities to increase their daily capacity whereby they might 
reduce the manufacturing cost per barrel in order to compete with them. 

The result has been an overcapacity to produce and a constant over- 
supply upon the market, while on the other hand there has been a 
constant tendency to restrict the market, the only exception being the 
reciprocity act of 1890, which was of short duration. 

17. The present milling capacity of the United States is sufficient to 
work up all the wheat now raised in the United States and more, too. 
Every bushel of the wheat that is now exported from this country as 
raw material could be manufactured into flour at home and exported, 
if the way was open for the American miller to place it in foreign 
markets. 

18. The effect of the treaties was favorable and for a time seemed to 
solve the problem as to what would be done with the increased pro- 
duction of flour, due to the speculative boom in mill building at the 
head of Lake Superior. The effect of their repeal was exceedingly 
prostrating to the flour trade of the entire country; while it did not 
directly affect all mills, yet indirectly it affected every mill in the United 
States by causing a ruinous competition at home, where the offerings 
could not be absorbed, even at a loss to the miller. 

20. Yes, along lines suggested in our remarks under No. 7. 



The Shelby Mill Company, Shelby, Richland County, Ohio. 

2. Flour from winter wheat. 

3. Capital, $150,000. Number of persons employed, 50. Average 
value of annual product, $500,000. 

4. Our market is both in the United States and abroad, the home 
market being 70 per cent of our product, and the foreign market 30 per 
cent. 

5. We sell direct to foreign dealers. 

0. We have made direct efforts in the past three years to extend our 
foreign trade by sending salesmen into foreign countries with samples 



RECIPROCITY STATEMENTS. 347 

and authority to sell. We met with success in England, Scotland, and 
Ireland. We succeeded in establishing some trade in Belgium, but the 
duty recently imposed by the Belgian Government oil flour has caused 
us to lose the trade in that country. We met with no success in France, 
Germany, Norway, and Sweden. 

7. The reason we were unable to place our product in the countries 
named in which we were not successful in extending our trade, was that 
said countries imposed discriminating duties against flour, in that the 
rate of duty charged on flour is much in excess of the rate charged on' 
wheat. As a means of bringing about the removal of such discrimi- 
nating duties, we would recommend the enactment into law of the Kerr 
bill (II . I J. 3212), or a measure similar. The discrimination practiced by 
foreign countries must be met by such measures as will enforce their 
removal. A fixed policy on the part of this Government antagonistic 
to discrimination in any form must necessarily meet with ultimate 
approval by the manufacturers in foreign countries who seek the United 
States as the best foreign outlet for their product. A policy such as we 
suggest, that would cause the removal of the discriminating duties on 
Hour, would tend to lower the price of breadstuff's in those countries 
to which we would extend our trade. Hence, it would meet with 
approval at the hands of consumers there, and would in turn be sup- 
ported by the manufacturing element abroad (aside from millers), who 
would be seeking to extend their sales in the United States in return for 
the extension offered American millers in the sale of American flour. 

8. On the 1st of January, 1895, Brazil placed a duty on flour of from 
40 cents to 50 cents per barrel. The falling oil' in exports of American 
flour to that country in 1895 was 200,000 barrels, in round numbers. 
About a year ago Belgium imposed a duty of 38 cents per barrel, and 
the result has been that in the past six months the shipments of Amer- 
ican flour to Belgium have been but about 12,000 barrels, whereas 
before the imposition of the duty, and during the years 1892, 1893, and 
1894, the exports of American flour to Belgium have averaged 200,000 
barrels annually. The changes in Cuba and the Latin -American coun- 
tries in their tariff's since the abrogation of reciprocity treaties have 
brought about a loss known to exceed 1,000,000 barrels annually, and 
estimated as high as 2,000,000 barrels of flour annually. The policy of 
France (adopted within the past few years) of paying a bounty on the 
export of French flour, is enabling French millers to make serious 
inroads on the trade in Great Britain, formerly supplied by American 
mills. The amount of French flour sold in Great Britain in the past 
twelve months was 2,300,000 barrels. Previous to the adoption of the 
present French policy in this respect, the market in Great Britain for 
French flour was practically nothing, as American flour was used instead, 
being cheaper. The sales of American flour in France in 1892 were 
over 200,000 barrels, brought about by a temporary suspension of the 
discrimination against flour, but reimposed at the solicitation of the 
French National Millers' Association. In 1893 and in 1894 less than 
2,000 barrels per annum of American flour were marketed in France, 
and in 1895 American sales were still further reduced to 1,102 barrels 
to France. 

9. The removal of the discrimination against flour would, in our 
opinion, enable the mills of the United States to increase their annual 
output, in due course of time, to nearly, if not quite, 100 per cent of 
their present business. Flour can be made cheaper in the United 
States than in any other nation in the world, because of our improved 
machinery and superior methods geuerally. The means of communica- 



348 RECIPROCITY STATEMENTS. 

tion with the populous countries, of Europe in particular, are so excel- 
lent, and the rates of freight so low, that our facilities would be unsur- 
passed by those of any other people. Furthermore, American wheat is 
acknowledged to be superior in flour-making qualities to the wheat of 
most other countries. It is practically at our mill doors, and there is 
no evident reason why, with the removal of discriminating duties, the 
mills of the United States should not put their flours into every avail- 
able port on the globe. With the increased demand thus stimulated in 
the extension of American flour markets, the product of wheat in this 
country would be increased and the agricultural situation improved to 
that extent. At present, the demand for flour being limited to our 
domestic markets and the markets of Great Britain, we find the milling 
business unprofitable and more generally prostrated than any other 
great manufacturing industry in the land. 

10. The output of our establishment is practically the same as six 
years ago, whereas, had we facilities for extending our trade abroad, 
we would have increased it very materially. 

11. Six years ago wheat was worth 80 cents per bushel at our mill. 
To-day it is worth 65 cents. We are paying practically the same wages 
to-day as six years ago, but are working 10 per cent less men. The 
enforced economy, brought about by the competition for the home trade 
and the restricted markets abroad, has resulted in a reduction in cost 
of flour full 5 cents per barrel over the cost of six years ago. Trans- 
portation rates at this time (six years ago) to Liverpool were 30 cents 
per hundred. To-day the rate is 20 cents per hundred. The inland 
rate is but 4 cents less per hundred than six years ago. There is less 
freight moving by ocean lines, and consequently the competition for 
what there is makes the ocean rate but about half what it was six years 
ago. Notwithstanding the low rates, we are unable to ship largely. 

12. The selling price for flour is from 75 cents to $1 per barrel less 
than six years ago. 

13. 14. Answered in Nos. 7, 8, and 9. 

15. We can compete with the foreign manufacturers of flour in qual- 
ity a.nd excel them, but the difference in quality is more than made up 
by the difference in price, and in this the foreign manufacturers have 
the advantage, because they are aided by the discrimination against 
American flour and the admission of American wheat at lower duties 
than on flour. 

16. The total product of flour in the United States has not materially 
changed in the last six years. 

17. The total exports of flour from the United States in 1894, under 
the McKinley law, were 16,859,533 barrels. The total exports of flour 
for 1890 were 12,082,591 barrels, showing a gain in exports under the 
reciprocity treaties of 4,776,942. As near as can be ascertained, the 
output of the flour mills in the United States in the years named was 
55,000,000 barrels each year. The domestic trade has suffered largely 
by the falling off in volume of consumption since 1893. This is our own 
experience as millers, and is verified by the experience of many others, 
to our certain knowledge. The increase, since 1890, in foreign trade 
was just so much aid to millers in maintaining their average output. 
Had the channels for foreign trade remained open, the extension of 
trade abroad would have gone on, and a certain degree of prosperity 
in milling would have been maintained. We estimate the natural sur- 
plus of flour for export (if the mills of the United States were produc- 
ing to their full capacity) would, in the course of a few years, amount 
to enough to convert into flour the entire product of wheat in this 
country. The necessity for new foreign markets is made apparent by 



RECIPROCITY STATEMENTS. 349 

tlie knowledge that the mills of the country are not in operation to 
exceed eight months annually at the present time. We believe favor- 
able legislation and reciprocity treaties would increase the aggregate 
output of flour at least 25,000,000 barrels annually. It is not out of 
reason to say that, under favorable conditions, the manufacture of flour 
in the United States could be increased within ten years by 50,000,000 
barrels, all of which would find a market abroad, and the production 
of wheat and every industry connected Avith the milling business would 
be proportionately stimulated. These figures are the result of care tut 
investigation by M. H. Davis, the president of this company, and were 
placed before your subcommittee at the hearing granted Mr. Davis in 
behalf of the Winter Wheat Millers' League, on February 25. 

18. The general effect of the reciprocity treaties, made in 1800, was 
highly favorable to the export trade in flour. The effect of their repeal 
was to tear down practically all the trade that had been built up under 
such treaties. 

19. The effect upon farm products, particularly wheat, was far reach- 
ing. The price of wheat fell in 1895 to the lowest point it has reached 
since 1860, and is to-day 05 cents per bushel, as compared with 80 cents 
to 90 cents, the average value of wheat for the preceding ten years. 

In further answer to questions Nos. 18, 19, and 20, we quote an edi- 
torial on the northwestern miller, appearing March 20, and in which we 
heartily concur and thoroughly indorse, as follows : 

The effect of the reciprocity arrangements referred to was favorable in the highest 
degreo to the foreign commerce of the United States, and especially to that portion 
of it contributed by the millers. Reciprocity met with the hearty approval of all 
millers, irrespective of party. It was regarded as the most intelligent aid to our 
foreign trade ever given it ; as a common-sense, businesslike policy, based on prin- 
ciples which were without question sound, logical, and thoroughly good. Practical 
experience under its provisions, made by practical business men, increased the favor- 
able sentiment which its inauguration awoke. By its means our export trade in 
flour found new fields in which to expand and develop, and an enterprising and 
aggressive spirit was gradually extending our exports into countries hitherto 
unknown to us. The milling industry had just begun to appreciate and profit by 
the reciprocal arrangements, when, by an utterly useless and seemingly unreasonable 
move, Congress completely destroyed them. 

The effect of their repeal was extremely bad. It was a blow at our commerce — 
unexpected, unnecessary, and most ill advised. It resulted in a serious loss of foreign 
trade, with no apparent gain from any quarter. 

It is both expedient and advisable to apply the reciprocity principle to future tariff 
legislation. This idea meets with the approval of millers generally, without refer- 
ence to party. They regard it as a common-sense and businesslike settlement of the 
tariff question, the true principle upon which our trade with foreign couutries should 
bo conducted. A general law authorizing the President to negotiate reciprocity 
treaties Avith foreign nations, as far as possible and as soon as possible, would, in 
our opinion, be of immense advantage to our export trade, and of vast benefit to our 
country generally. 

Much can be accomplished by diplomatic negotiations in extending our export 
trade. Countries now closed to us completely by prohibitory tariffs could unques- 
tionably be opened by such negotiations. At present, as far as American flour is 
concerned, we have pushed our trade, industriously and with enterprise and vigor, 
in every land from which we are not barred by tariffs so high as to be practically 
prohibitory. Many markets opened to us by reciprocity have become closed by its 
repeal. These might be easily recovered by intelligent negotiation. 



The Cowgill & Hill Milling Company, Carthage, Mo. 

As we have never given especial attention to the export trade, but 
have done it through a third party, we could not answer intelligently 
many of the questions asked. We will say, however, that we consider 
reciprocity treaties, properly gotten up, as simply sound business sense 



350 RECIPROCITY STATEMENTS. 

in politics, or perhaps better than that, in statesmanship. And how 
anyone with good business judgment can for a moment withhold their 
approval of measures that take advantage of an importing business to 
further the exports of both our natural and manufactured products is 
difficult to see. In our own line of business the sale of several millions 
of barrels of flour was lost to the milling interests of the country by the 
abrogation of the treaties. There can be no doubt of our ability, if need 
be, to force commercially an acknowledgment of the benefits received 
from this as a selling market by granting us privileges in return. It 
is a matter of business. 

The Oowgill & Hill Milling Company, of Carthage, Mo., is engaged 
in the manufacture of wheat flour, with capital of $120,000, employing 
when run to limit of capacity 45 hands. Much the larger part of our 
product is placed in the domestic markets; that which goes abroad is 
placed for the most part through commission dealers. Are not suffi- 
ciently familiar with the action of foreign countries upon the matter of 
flour imports to comment upon them, but do know that our sales abroad 
for the past three years have not been one-fourth of what they were 
during — say the preceding three years, for the reason that most of the 
time we could not get cost for our flour. 

Our present output is about one-half that of six years ago. Cost of 
production practically the same, aside from the cost of wheat, which is 
materially less. Labor the same. 

We consider the general effect of the reciprocity treaties to have 
been very favorable to the export business of the country, and most 
heartily indorse the application of the principle to future tariff legisla- 
tion, though we think the treaties that might be made would be far 
more likely to be based upon sound business principles if they could be 
formulated by a commission of business experts in sympathy with the 
objects to be attained, rather than by parties with no especial training 
in that direction. 

We think that the immense advantage that our enormous imports of 
articles of foreign growth and manufacture that can not be profitably 
produced within our own borders should be fully utilized in developing 
markets for our own products, both raw and manufactured. 



Keillor Brothers, St. Louis, Mo. 

2. Wheat flouring mills ; having one mill 3,000 barrels capacity and 
another of 4,000 barrels capacity every twenty-four hours. 

3. Over $1,000,000. Employ 230 to 240 men. Value annual product 
over $5,000,000. 

4. We find our market at home, and also in Europe and South 
America. About 60 per cent is exported, and 40 per cent is marketed 
in this country. 

5. We sell direct to foreign buyers. 

6. We have continually made efforts to extend our foreign trade, and 
of late years have been successful in the United States of Colombia, 
Republic of Costa Rica, British Honduras, Venezuela, and Brazil. Dur- 
ing the period when the duty was 88 cents per 100 kilos to the Island 
of Cuba and other Spanish dependencies, we sold to those markets 
between 150,000 to 200,000 barrels annually. Since the duty has been 
advanced to $4 per 100 kilos, our sales have not been over 25,000 barrels 
per annum, and since the war ^restrictions they have not been over the 
rate of 5 ? 000 barrels x>er annum. 



RECIPROCITY STATEMENTS. 351 

7. Prior to the discriminating duty recently established in France as 
against flour and in favor of wheat, we shipped to France about 100,000 
100-kilo sacks of flour per annum. Since the establishment of that dis- 
criminating- duty, we have not shipped a sack, but have lost the trade 
entirely. We have experienced a similar result in our trade Avith 
Sweden, Belgium, Switzerland, and Germany. Our shipments to those 
countries would aggregate 200,000 sacks per annum prior to their dis- 
criminating duties. 

You ask, can we suggest any means by which the obstacles to our 
trade can be removed ? We can think of no other manner than a recipro- 
cal system of tariffs and a complete shutting out from this country of 
all products of those countries that discriminate against our manufac- 
tured articles and in favor of our raw material, which we think would 
result in a continued trade in our manufactured articles, principally 
those produced from raw material, in which we excel other countries in 
the production thereof. This would give more money and better wages 
to the laboring community of America than all the labor associations 
that are in existence can bring forth, and probably be the best solution 
of the labor problem that has ever been accomplished. It would not 
hurt the farmer, because foreign countries do not come here for food 
especially, unless they are forced to from necessity, when they would 
take the manufactured article as quick as the raw material. It would 
also enable our own people to buy and consume much more liberally 
the farmer's product than they are able to do now. Again, we would 
sell them our labor in the shape of manufactured articles, instead of 
sending them gold to pay for our importations. 

8. We have already mentioned foreign countries who have lately 
imposed discriminating duties in favor of our raw material as against 
our manufactured articles. We have had enough experience in this 
trade to feel and realize that unless we can force those foreign countries 
heretofore mentioned to make more equitable duties in regard to wheat 
and flour, ruin complete and unmistakable is bound to overtake the 
largest manufacturing interest in this country, and that is the flour- 
milling interest, as fully 50 per cent, in our opinion, of the flour manu- 
facturing capacity is dependent on foreign trade, and should the whole 
of the mills begin to compete and depend upon the home trade, or what 
they can get of it, ruin to the interest can be the only result. 

9. We believe that nondiscrimination duties imposed by foreign 
countries on our wheat and flour, and the same duties imposed upon 
imports from the United States by those foreign countries as they 
impose on the imports from other countries, would result in the exten- 
sion of our export trade far beyond what it has ever been, and at the 
same time would secure to the millers of the United States almost a 
monopoly of the flour imports of foreign countries, for this reason, that 
there is no wheat-producing foreign country whose facilities for moving 
wheat from the point of production to the point of manufacture, and 
from thence to the seaboard, are equal to the United States; and 
further, no wheat-producing country in the world has developed the 
manufacturing of wheat equal to the United States; neither are they 
in any shape to compete with our mills yet. 

10. We have two less milling establishments than we had four years 
ago. One large mill we lost by fire, which we have not rebuilt, and 
to-day Ave could not sell the two properties we presently own for 50 per 
cent of their cost or what we could erect them for. We believe that 
this will apply to almost any mill in the United States that is not excep- 
tionally well situated, and for the past three years Ave have not run 
the mills over GO per cent of the time we have run them six years ago. 



352 RECIPROCITY STATEMENTS. 

11. The present cost of production of flour compared with six years 
ago is only about 65 per cent. Wages have been reduced, the cost of 
all milling supplies, repairs, and machinery have been reduced, and the 
the cost of raw material and transportation compared with six years 
ago is fully 25 per cent lower. The last two items, as far as cost is con- 
cerned, are dependent upon the competition of foreign shipping countries 
and the crop produced in this country. 

12. Present selling prices compared with those of six years ago are 
as follows: Six years ago we got easily from 10 to 15 cents per barrel 
over and above the cost of manufacture. For the past two or three 
years we have not got over 50 per cent of this advance on cost and a 
great portion of the time no advance on cost. 

13. French millers can buy our wheat, manufacture it into flour in 
France, and compete to advantage with us in all European markets 
that we can ship to. This is on account of their system of import 
duties, which results in a bounty or equivalent to all French millers 
who export. 

14. We have not yet come to any knowledge where foreign com- 
petitors either in the cost of manufacture or transportation charges to 
foreign markets have any advantage of us. 

15. We believe that the millers of the United States can compete 
advantageously with any foreign manufacturer in quality and price 
under the same circumstances. We mean by foreign manufacturers, 
millers who are in wheat exporting countries and who manufactuer 
there, but we do not mean that we can compete with millers who are 
manufacturing in countries where they can import raw material at a 
less price than the manufactured article. 

16. Manufacture of flour has decreased in the last six years, although 
the population of the United States has increased considerably. 

17. We do not believe that over 50 per cent of the wheat produced 
in this country can be absorbed in our domestic markets. The balance 
is used for export and for seeding purposes. If all the capacity of the 
mills in the United States were utilized in manufacture for the home 
trade and the balance for export, we believe the entire surplus would 
be exported in the shape of tile manufactured article. The milling 
interest, in our opinion, is too large for almost any necessity ; at the 
same time we believe it can be made profitable if run 75 per cent of the 
time per year. 

18. The effect of the reciprocity treaties made in 1890 were favorable 
to the export trade of the United States ; they kept the flour trade in 
a healthy condition, and were the reason of the fine development of 
that industry that has placed us ahead of all other milling countries. 
The effect of their repeal is the disastrous condition of the milling 
trade now existing. Immediately after the abrogation of the reciproc- 
ity treaties by foreign countries some few years ago, the New York 
Tribune wrote us asking our opinion regarding what the result would 
be. We think we are on record with them stating at that time that 
the result would be, in our opinion, that wheat in St. Louis would never 
be worth over 75 cents per bushel under any circumstances, except 
comparative famine. Since that time we have had poor crops, but the 
price of wheat has never stayed one week in this market over 75 cents 
per bushel, and has been as low as 40 cents per bushel, and it did not 
reach 75 cents per bushel by legitimate means. 

19. The effect on farm products has been a production of other 
articles besides wheat to such an extent that it has reduced rheir value 
lower than any record of any previous years. 



RECIPROCITY STATEMENTS. 353 

Our replies to inquiries 17 and 18 are from actual experience and an 
experience in this trade steadily since 1858. 

20. We favor the reciprocity principle in future tariff legislation 
from beginning to end, believing the present system is as direct an 
exhaustion of the strength of the United States as can possibly be 
adopted. We believe that the producing capacity of the United States 
of raw material is the basis of all comforts that both rich and poor can 
get; their manufacture is just so much more additional, as it disposes 
of our labor with raw material. Any legislation that cuts off our labor, 
in the shape of manufacture of raw material simply impoverishes the 
country, and especially the laboring portion of the country, just that 
much. We believe that any country that will discriminate against our 
labor should be shut off' commercially from the United States altogether. 
We would be better off and have the gold that they would otherwise 
draw from us and which we need very badly. 



Sperry Flour Company, San Francisco, Gal. 

We are a corporation organized under the laws of California, running 
twelve different flour mills, and manufacture about a million and a 
quarter barrels of flour per annum, of which about 45 per cent is 
exported. A large number of the markets with which we deal are open 
to free trade, and therefore have no injurious customs regulations. We 
refer especially to the Asiatic markets, but we would call your atten- 
tion to the heavy duty imposed upon the flour shipped to the Philippine 
Islands, a colony of the Kingdom of Spain. This duty, amounting to 
82, Mexican, per barrel, besides port charges, makes a very heavy 
discrimination in favor of Barcelona flour, which is shipped thither 
direct from Spain. A short time ago our correspondents wrote us that 
the colonial government threatened to demand $2 in gold per barrel, 
instead of Mexican, but our correspondent made earnest remonstrance 
and the threat was not carried out. 

Our country imports large amounts of sugar, hemp, and other products 
from the Philippine Islands, a very considerable proportion of which 
is admitted almost free of duty, and it seems to us that it would be no 
more than fair that a reciprocal benefit should apply to our own 
American products ; at all events if reciprocity should again become 
the policy of the country, we hope the Philippine Islands will be placed 
on the same basis as Cuba, and American flour admitted free at Manila, 
as it was formerly at Habana. This last point we insist upon as only 
even-handed justice. 

H. Eep. 2263 23 



PROVISIONS. 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, D. 0., March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses'? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade ; and if so, can you suggest any means by 
which they may be removed? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade ? 

10. What is the output of your establishment compared with that of 
six years ago? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land ? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture aud in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices ? 

354 



RECIPROCITY STATEMENTS. 355 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur : 
plus for export if all manufacturers in your lines were producing to 
their full capacity ? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) ' 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred j)ersons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Representatives; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



REPLIES. 

Armour & Co., Chicago, 111. 

2. The lines of trade engaged in are provisions, glue, hair, wool, and 
fertilizer. 

3. We deal with the following foreign countries: Great Britain, 
France, Germany, Holland, Sweden and Norway, West Indies, and South 
America. 

4. While at all times pushing trade throughout Europe, we have dur- 
ing the past year made a special personal effort to extend our trade in 
South America, with some success. 

5. We are not aware of any discriminations in the customs regula- 
tions of any foreign country restricting our trade, and regard heavy 
duties as the chief obstacle to increased trade. 

0. We are not aware of there having been any important tariff changes 
recently affecting our lines of product. 

7. The removal or reduction of the customs duties imposed by foreign 
nations would place this country in respect of provisions in the front 
rank, and would inevitably increase our export trade enormously. 

8. Our domestic business has increased since 1889 about 37 \ per cent, 
owing to enlarged facilities for distribution and organized effort to 



356 RECIPROCITY STATEMENTS. 

increase trade. About one-eighth of our total business has been with 
foreign countries. 

9. Our selling prices do not materially differ from those of six years 
ago. 

10. In the cost of merchandise dealt in by us, foreign competitors 
rarely have any advantage over us. Our trade with the South Ameri- 
can Republics is seriously hampered by lack of reliable transportation 
facilities. Exact advertised dates of sailing enable dealers in South 
America to order goods from foreign competitors with assurance of ship- 
ment at regularly specified times, while we have to submit to the move- 
ments of the irregular steamships with no settled dates for departure 
or arrival. 

11. We can compete favorably with foreign merchants both as to 
quality and prices. 

12. The general effect of reciprocity treaties made in 1890 was favor- 
able. There was prospect of marked improvement, shown by increased 
inquiry, and business with South America was stimulated by investiga- 
tion as to trade requirements. While during the operation of these 
treaties insufficient time was given for actual development, considerable 
progress was made and unquestionably would have continued had 
these treaties not been repealed. 

13. We favor the application of reciprocity principles to future tariff 
legislation. 

Covering, nearly as we can, other items alluded to, we would say 
that foreign competitors in our lines of business have the advantage 
over us of cheaper wages and more reliable means of transportation; 
yet, we feel that both as to quality and prices we can compete favora- 
bly. We realize the disadvantages arising from lack of regular trans- 
portation perhaps to a greater extent than anything else, except the 
high duties. 

The effect of the repeal of the reciprocity treaties, we think, was dis- 
astrous to farm products, inasmuch as grain exports are largely regu- 
lated by the extent to which manufactured goods are taken in exchange 
for them, and the uncertain character of the communication between 
the United States and South America has, to some extent, given indi- 
rect comfort to the grain growers of Chile and Argentina. 

As consumption of our products is very largely regulated by their 
relative cheapness or dearness, we have no doubt the removal or reduc- 
tion of customs duties would very greatly increase the demand and 
would employ fully the present capacity for production. 

In general, we would say that we decidedly favor the reenactment of 
reciprocity treaties, believing their effects would be beneficial in our 
own and in all other lines of trade. 



Mr. Edwin Ross, of Armour & Company, Chicago, III. 

In furtherance of the interests of the firm, I visited Brazil last year 
and made a careful study of the requirements of that country in the 
line of pork products. 

For a number of years supplies of this nature have been drawn from 
this country to a considerable extent, but we are unable at this writing 
to give any comparative figures showing the volume of exports during 
the period of the existence of the recent reciprocity arrangements and 
since their repeal. There is no question in our minds, however, that 



RECIPROCITY STATEMENTS. 357 

under reciprocity arrangements we can be assured of a continuance of 
our relations on a larger scale than at present, and this will apply to 
the manufacturing interests in this country in general as well as those 
of the packing industry. We consider the present import duty exacted 
by the Brazilian Government on provisions excessive, and any adjust- 
ment of same on a more equitable basis would be hailed by us with 
much satisfaction. 

In conversation with our consular agents in South America I learned, 
that the official returns at the various ports conclusively showed that 
American manufacturers in general were making substantial headway 
in the introduction of their goods under the last reciprocity treaty, and 
that since its repeal the ground then gained has been lost to a large 
extent. 

Owing to the peculiar climatic conditions the development of that 
country will constitute it an importer of all manufactured goods on a 
constantly increasing scale, and any reciprocity arrangements that can 
be satisfactorily arrived at between the Brazilian and American Gov- 
ernments, of a thoroughly practical nature, in our opinion, will prove of 
greater value to this country in general than is fully appreciated at the 
present time. 

In order to derive the full benefits of such reciprocity arrangements, 
however, fast steam communication by regular line of high-class steam 
vessels is nothing short of an absolute necessitj^. England, France, 
Germany, and Italy have been and are unrelenting in their efforts 
to place the Brazlian buyer in the closest possible touch with the 
manufacturers in these countries. 

Our European neighbors are extremely jealous of the practical 
monopoly they enjoy in South America, and if this country hopes to 
compete successfully, equal transportation facilities will have to be 
offered. This lack of regular fast-mail communication places this 
country at present at an inestimable disadvantage. 

Moreover, the establishment of banking arrangements, whereby the 
interests of American manufacturers will be carefully guarded and 
encouraged, would seem to be highly desirable, as it is but natural that 
English banks, having practically a monopoly in South America, will 
favor their own countrymen and place as many obstacles as possible in 
the way of direct competitors. 

1 have made reference to these matters of transportation and banking 
to further emphasize the desirability of a reciprocity treaty, as without 
such it can not be hoped with any degree of confidence that these enter- 
prises could be conducted successfully. Each will materially aid the 
other for the general good of the American manufacturer. 



The Cudahy Tacking Company, Chicago, South Omaha, Sioux City, and 

Los Angeles. 

2. Beef and hog products of all kinds, inclusive of oleomargarine, 
beef extract, pepsin, etc. 

3. Amount of capital, $3,500,000. Twenty-five hundred persons 
employed. Eighteen million dollars worth of annual product. 

4. The bulk of our trade is at home, but we export between $3,000,000 
and 84,000,000. 

5. The United Kingdom and the Continent of Europe. We sell 
directly to foreign dealers, but to the South and Central American 
trade we sell through commission houses at the various seaboard cities. 



358 EECIPROCITY STATEMENTS. 

6. We have made no special effort to extend our foreign trade, exclu- 
sive of correspondence. 

7. We know of no discrimination against American products compared 
with those of other countries, with the exception of France and Germany, 
which require the Government microscopical examination of meats 
before permitting them entrance. We would call your attention, how- 
ever, to the very heavy duty charged by both France and Germany 
upon American meats, amounting to about 2 J cents per pound, or, on 
present market values, equal to about 33£ per cent ad valorem. We 
certainly think it would help the export trade in hog products if this 
restriction as to the importation of American meats were to be abolished, 
and very much so if the duty on these goods could be entirely removed. 
There is also practically a prohibition of the export of live cattle and 
dressed beef to Germany and France, but as these countries have 
taken very small quantities of these products in the past, the prohibi- 
tion is of no great moment. 

8. We know of no recent changes in the tariffs of foreign countries 
except a very slight increase in the tariff on canned meats imported 
into Germany through Hamburg and Berlin. 

9. The removal of customs duty in France, Germany, and the other 
Continental European countries would undoubtedly help considerably 
the export trade in meat products. 

10. The output of our establishment is considerably larger than it 
was six years ago, as we have recently added several packing houses. 

11. We know of very little variation in cost, wages, and transporta- 
tion, compared with the prices ruling six years ago. 

12. The market for live hogs and cattle is constantly fluctuating, and 
therefore the prices of our manufactured product are also liable to 
wide fluctuation in value, and a comparison with those ruling six years 
ago is of little value. 

13. The markets with which we deal are open to the competition of 
the world. In hog products our chief competitor is at present Den- 
mark, for the trade of Great Britain ; and in beef products Australasia 
and Argentina are sharp competitors, and are interfering considerably 
with the prices obtainable for American product in Europe. This com- 
petition is rapidly becoming of great consequence to the producers of 
farm products in this country. Denmark, for example, has within the 
past few years doubled her export of butter and hog product to Great 
Britain. Australia and New Zealand are shipping butter, beef, and 
mutton by the shipload, and Argentina also promises to be a competitor 
for the trade in butter, and especially in mutton. 

14. Our foreign competitors have no advantage over us in the cost of 
manufacture, nor, to any great extent, in transportation. Their goods 
are, as a rule, no better liked, but the great advantage of our Australian 
competitors is cheaper raw material. 

15. We can compete successfully with foreign manufacturers in both 
quality and price. 

16. We do not think the total product of the United States in our 
line has varied very much during the past six years. 

17. It is impossible for us to give any definite answer to this question, 
but, undoubtedly, as the population of the United States increases, our 
home market will become of more and more importance, and our foreign 
trade in meat products less. 

18. We are unable to answer this question, as we do but little direct 
business with the countries with which the United States entered into 
reciprocity treaties. 

19. We think the reciprocity treaties had but very little effect upon 



RECIPROCITY STATEMENTS. 359 

the value of farm products, simply for the reason that European coun- 
tries take ninety-five one-hundredths of these products, the ports of 
Liverpool and London alone taking of our goods nearly as much as the 
rest of the world combined. 

20. We strongly favor the application of the reciprocity principle to' 
all future tariff legislation. 

In conclusion would state that, while our industry consists of manu- 
facturing farm products, we can hardly be called " manufacturers," , 
in the general use of this term. Our business relations being almost 
entirely with European countries, the action of any South or Central 
American countries has but little effect upon us. While we most cer- 
tainly desire in every way the extension of the market for American 
manufactures abroad, still it seems to us that as long as American 
manufacturers insist upon a protective tariff for the sale of their goods 
in this country, they can hardly expect to compete in foreign countries 
with the manufacturers of Europe. 



The National Provisioner Publishing Company , New York. 

The ^National Provisioner is the organ of the meat and provision 
industries of the United States, and is so recognized both in the United 
States and in Europe. It circulates all over the world, and particularly 
in those countries in which American products are sold. 

4. My constant effort as editor is to avail myself of every opportunity 
presented to urge extension of American trade in foreign countries. 
We accomplish this best by constantly pointing out the kinds of meats 
desirable in certain markets, and advising the trade to adhere as closely 
as they possibly can to the stated requirements. The result has been 
that now shippers study more closely what these requirements are, and 
shape their business accordingly. Thus, one packer will pack meats 
which are cured and prepared for the English trade only; another will 
pack beef or pork which would not sell to any other but a South Amer- 
ican country, and so on. I recognize that we necessarily have a large 
surplus all the time of pork and beef products, and that any conditions 
that arise tending to harm or curtail our exports are at once a detri- 
ment to the industry, and must certainly, in the end, be a drawback to 
our agricultural interests. 

The packing trade finds it difficult, however, to make the farmer under- 
stand that when meats of a certain kind, say lean pork products, are 
required the farmer has to do his share in meeting this changed demand, 
and consequently the farmers of countries which are more alert in these 
matters get the "inside track" and American products lose ground. I 
have oftener than once called attention to the subject, and only recently 
pointed out in my paper that American provisions were losing ground 
owing to the failure of our farmers to raise hogs more adapted to the 
market requirements of the times. It is not unlikely, however, that 
indifference on the part of our pastoral friends will continue to show 
itself until they learn by positive experience and are educated up to 
the fact that the day of the enormous lard hog has passed, and that if 
American products are to hold their own in foreign markets the farmer 
must do his share to maintain and retain that trade by adopting the 
suggestion of the packer or the commission merchant as to what the 
exact market requirements are. It stands to reason that if consumers 
in a certain section of say Europe, require meats of a certain kind it 
would be folly, and of course useless for any American exporter to 



360 RECIPROCITY STATEMENTS. 

attempt to sell in that section if lie can not meet its requirements. His 
inability to do so is now beginning to tell in our lessened exports and in 
the advance made by other countries, such as Canada and Denmark, 
whose farmers have studied the question out and have done so to some 
purpose. 

5. I think that all foreign embargoes against American cattle and 
meats are unjust and are maintained more to stimulate domestic agri- 
culture than on account of any belief that our cattle are diseased or 
our meats unhealthy. The latter, however, is the popular excuse, and 
in this lies the injustice and unfairness of restrictions. As to a remedy, 
I think it will be found in either reciprocity or retaliation. I favor the 
latter as embodied in Senator Proctor's bill, and do so on the assump- 
tion that if American meats are not good enough for Germans and 
Frenchmen, then the hundreds of German and French edible articles, 
largely adulterated, which are shipped over here are certainly not good 
enough for Americans. Your honorable body must know, however, 
that the sole cause of these restrictions is the strength of the agrarian 
movement in continental Europe. The protective system is having 
good results, and Germany this year has been unusually productive, 
both in cattle and hogs. 

6. Since the passage of the Wilson bill nearly all the countries of 
continental Europe have either newly established or increased already 
existing embargoes against American cattle and meat products, and 
have added duties on such products as cotton-seed oil, which enters into 
the composition of a blended lard. 

7. I think that the removal of duties as well as embargoes would very 
materially stimulate export trade. 

8. What is the volume of your business compared with that of six 
years ago? As to this question, I will draw a comparison between our 
export business in 1895 as compared with 1894. Our exports in 1895 
show a difference in value as compared with 1891 of $18,898,577, which 
sum is unfortunately on the wrong side. In 1894 the value of our 
exports, consisting of cattle, hogs, canned beef, fresh beef, salted beef, 
tallow, bacon, hams, pork, and lard, amounted to $173,376,118, and in 
1895 to $154,477,541. In 1895 we exported 118,762 cattle less than in 
1894, representing a difference in cash on the wrong side of $11,402,735. 

Our exports of live hogs is a small matter at any time, but in 1895 
the number increased by 759 head, representing a cash difference over 
1894 of $4,247. The Treasury makes no return of live sheep or dressed 
mutton exports ; why, I do not know. Although there has been a good 
deal of talk during the year just closed about our canned products, 
and that they were becoming less popular abroad through competition 
from other countries, etc., our export returns show that in 1895 our 
canned-beef exports exceeded those of 1894 by 2,148,481 pounds, 
amounting in cash to $270,460. 

In fresh-beef exports a falling off took place, which is accounted for 
by the cattle shortage, which became so important a factor in the 
markets early in the year, and the existence of which the Department 
of Agriculture was so doubtful about. The figures, however, showing 
the shortage in cattle and beef exports tell their own story. In 1895 
America exported 19,726,624 pounds of fresh beef less than in 1894, 
which difference represents in cash $868,618. Our exports in salt beef 
were less in 1895 than in 1894 by 124,301 ix>unds, but the prices were 
higher, and a gain on the right side amounting to $51,224 was recorded. 
Our tallow exports in 1895 were less than those of 1894 by 10,079,527 
pounds, representing in cash $534,866. This difference was to be 



RECIPROCITY STATEMENTS. 361 

expected, and was one of those changes which the American trade can 
lay at the door of tariff changes, for tallow was placed on the free list 
by the Wilson bill. Our tallow exports were quite an item prior to the 
passage of the Wilson bill, but since then, instead of being exporters, 
we have almost become importers, with the result that the material 
has never been so cheap. 

In bacon, 1895 shows an increase in quantity over 1894 of 516,442 
pounds, but a difference on the wrong side in cash amounting to $218,868,, 
showing that lower prices for this article have ruled in 1895. In hams, 
the gain in 1895 over 1894 amounted to 14,655,224 pounds, representing 
in cash a gain of $781,629. Pork, like bacon, shows an increased export 
in quantity in 1895 over 1894 of 5,695,092 pounds, but a loss in value 
amounting to $314,004. The same remark applies to lard; in quantity, 
1895 shows an increase over 1894 of 29,909,611 pounds, but in cash the 
difference on the wrong side amounts to $2,554,049. 

^o very healthy figures can be expected on oleo oil exports for 1895. 
This trade has seen an exceptionally dull year, mainly due to the inac- 
tivity of the European margarine churners, consequent on the abnormal 
exports of cow butter from Australia and other countries. Tables show 
that in 1894 our exports of oleo oil amounted to 112,910,170 pounds, 
representing in cash $10,678,609. In 1895 the quantity was reduced to 
81,265,624 pounds, amounting in value to $6,894,773, which means, in 
quantity, a falling off of 31,644,446 pounds, and in cash $3,783,836. 
Calculating the entire year's business, the loss in 1895, as compared to 

1894, amounts, as above stated, to $18,898,577. England is our larger 
buyer, and I therefore append for the information of your committee 
some figures regarding our trade with that country last year, 1895, as 
compared with 1894. I also furnish some particulars of the progress 
made by other countries in supplying England's needs, which will show 
the growth of competition and give some idea as to how we are, to an 
extent, losing what we held heretofore as undisputed territory. 

Of oxen and bulls, England's imports in 1895 were 413,337 head, 
against 471,794 in 1894. The imports from the United States of this 
stock fell off considerably. In 1894 we sent John Bull 381,657 head, 
and in 1895, 276,307. Canada likewise sent about 15,000 head less in 

1895. Argentina took advantage of America's shortage and increased 
her figures by 30,000 head over 1894. England's imports of sheep and 
lambs increased considerably last year, the figures being : 1894, 484,597 ; 
1895, 1,065,470, while 1893 was down to 62,682, of which we contributed 
none. The imports for 1894 and 1895 were mostly from Argentina, 
Canada, and the United States. Exporters on this side have no reason 
to be dissatisfied with their share of the increased business, although 
the largest share went to the South American Republic. 

In 1894 we exported to England 198,138 head, and in 1895 the figures 
were increased to 453,250. Canada's shipments for 1894 were 135,622 
head, and for 1895, 214,310. In 1894 Argentina shipped John Bull 
73,446 head, but closed the year 1895 with the big total of 308,094. 
The value of these imports was increased from £88,530 in 1893 to 
£804,823 in 1894, and £1,782,544 in 1895. These figures show enormous 
jumps, and suggest that England is now buying sheep for their wool, 
for the increased consumption of mutton in two years of itself would 
hardly increase the imports nearly fourteen times over in value and 
seventeen in quantity. In 1894 England imported 3,689,604 hundred- 
weight of bacon, which was an improvement over 1893 of about 500,000 
hundredweight. In 1895 the total was 4,063,418 hundredweight. 

This shows an increase in quantity, but a diminished valuation of 



362 RECIPROCITY STATEMENTS. 

about $150,000, which might reasonably be expected in view of the low 
values of the past year and keen competition. Of the total quantity 
for 1895 the United States contributed 2,649,482 hundredweight, or an 
increase over 1894 of about 100,000 hundredweight. Denmark's con- 
tribution was 1,013,930 hundredweight, which nearly doubled her figures 
for 1894. Canada improved in 1895 by over 14,000 hundredweight. 

The imports of hams show a steady increase with each successive 
year. The total for 1895 was 1,289,518 hundredweight. Of this the 
United States sent 1,203,157 hundredweight, an increase over 1894 of 
127,887 hundredweight. Canada's figures for 18y4 were 50,576 hundred- 
weight, but in 1895 these were increased to 81,707 hundredweight. 

England's fresh mutton imports in 1895 amounted to 2,610,375 hun- 
dredweight, an improvement of about 300,000 hundredweight over 1894. 
The largest proportion was received from Australasia (1,670,968 hun- 
dredweight), Argentina (715,296 hundredweight), and Holland (167,228 
hundredweight). Of 220,168 hundredweight of salt pork imported into 
England in 1895, 122,902 hundredweight was from the United States, 
and the balance from other countries not specified. We did better in 
1894 by about 28,000 hundredweight. The increase from u other coun- 
tries " in 1895 was about 23,000 hundredweight, while the grand total 
of all shows a decrease in 1895 of about 5,000 hundredweight. 

Butter imports show an increase in 1895 over 18' 4 of over 250,000 
hundredweight, while margarin, on the other hand, shows a gradual 
decline for the past three years, the totals beino-: 1893, 1,299,970 hun- 
dredweight; 1894, 1,109,325 hundredweight; 1895, 940,168 hundred- 
weight. The total for 1895 is made up as follows: Norway, 9,377 hun- 
dredweight; Holland, 878,827 hundredweight; France, 28,132 hundred- 
weight; other countries, 23,832 hundredweight. 

Lard imports for 1895 show an increase over 1894 of 342,172 hundred- 
weight, the figures being : 1894, 1,400,516 hundredweight ; 1895, 1,742,688 
hundredweight, of which this country sent 1,681,619 hundredweight. 

From 672,763,274 pounds of wool imported into England in 1893 the 
figures have increased in 1895 to 770,961,360 pounds. Of this total 
Australasia contributed 541,394,383 pounds. 

England's tallow and stearin imports and exports are interesting to 
the trade on this side, if only to show what the placing of tallow on the 
free list has done to hurt our foreign trade in this product. In 1893 we 
sent to England 312,412 hundredweight ; in 1894, 181,879 hundredweight, 
and in 1895, 104,009 hundredweight. Since 1893 Argentina has actually 
doubled its contribution, the quantity for 1895 being 102,789 hundred- 
weight, against 51,618 hundredweight in 1893. Australasiahasincreased 
its figures likewise, as may be seen. In 1893 the total imports from 
there were 1,049,019 hundredweight; in 1894, 1,424,797 hundredweight, 
and 1895, 1,804,249 hundredweight. In this connection it is well to 
point out that the exports of candles from England in 1895 show an 
improvement over 1894 by over 4,000,000 pounds, and that the exports 
of soap also increased by 153,615 pounds. The exports of tallow and 
stearin in 1895 increased over 1894 by 207,000 hundredweight. 

John Bull is a large exporter as well as importer. In 1895 he 
exported provisions (including meat) to the value of £940,785, which 
most likely were American, for the embargo countries on the Continent. 

Our Wilson bill enabled him to double his wool exports in 1895, for 
which year the total was 21,717,300 pounds, against 12,984,900 pounds 
in 1894. 

That the difference is due to our tariff is proved by the fact that in 
1894 England exported to the United States 5,898,000 pounds, as against 
13,823,400 pounds in 1895. 



RECIPROCITY STATEMENTS. 363 

9. Present prices, I should roughly estimate, are about 25 per cent 
less than they were six years ago. This, I think, is due to the fact that 
during the dull times of the past three years consumption of all kinds 
of meats, both at home and abroad, fell off fully 35 per cent, and to the 
fact that the supply continued normal and perhaps more so in regard 
to hog products. Values on the European market have also depreciated 
through Danish competition. That country of late years has come up 
wonderfully in the production of bacon and has been producing a very 
choice article at a very low figure, so low in fact as to admit of little* 
profit. The Danes, however, have practically driven Irish curers out 
of the business and have hurt America's trade considerably. The 
Danish Government has been very paternal in the matter and has done 
everything to help both the farmer and the packer. 

10. I am not prepared to say in extenso what advantages, if any, our 
foreign competitors have. Of course, the schedule of wages paid to 
workmen in Europe is much less than in America, but I think this cir- 
cumstance is offset by our labor-saving devices and the fact that we 
conduct operations on a much more extensive plan. On this latter 
account I think that we are also favored in the matter of freights, 
although I can not say positively that this is so. 

11. Our beef of late has improved wonderfully in quality, so much 
so as to hold its own in the English market with the best; and when I 
say this I think I might as well be understood as saying that it is as 
fine as any produced. Of course it does not sell as well as the home- 
produced article, or what is known as "prime Scotch," but that it can 
be passed off as such is evidence that there is nothing against it except 
that it is "American." Our bacon and beef products are always sold 
in Europe less than the home article, and are not so good. Our curing, 
etc., is done on too gigantic a scale to receive as close attention as that 
bestowed by English, Irish, and Danish packers 5 and another reason, 
and perhaps the primary one, for the inferior quality of our bacon, etc., 
is that our farmers will not study the feeding and breeding of hogs 
closely enough so as to meet the demands and requirements of the 
foreign market. 

12. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? The reciprocity treaties referred 
to were decidedly favorable to exporters and the effect of their repeal 
was to very much narrow export trade. 

13. Do you favor the application of the reciprocity principle to future 
tariff* legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? I am in favor of any legislation 
that will open all ports to American products. As I said before, we 
always have a surplus above our own consumptive demand, and the 
easier and freer our export possibilities are the better off will the trade 
be and the more the farmer will get for his output, whether in cereals 
or animals. 

As 1 said before, I shall be glad to furnish you any other information 
you may desire, and beg to assure you that you can use this communi- 
cation as you may elect. I think that consular reports on export pos- 
sibilities, if intelligently circulated, can do a great deal of good, and I 
think that the Government would benefit American industries very 
much by sending intelligent, well-posted men around the world to 
ascertain how the United States can extend its exports. 
Yours, respectfully, 

John Fanning O'Eeilly. 



364 RECIPROCITY STATEMENTS. 

Plankinton Packing Company, Milwaukee, Wis. 

2. Pork and beef packers. 

3. Our cash working capital is $250,000; employ, on an average, 475 
men; value of annual output, about $5,000,000. 

4. Our markets are about evenly divided between home and export 
trade. 

5. We sell both direct to foreign dealers and through commission 
houses. 

6. Have made considerable effort to extend our foreign trade with 
England, France, and Germany, with good success in England, but 
just fair success with Germany and France. 

7. France imposes a duty on American pork, as does also Germany, 
and these countries, generally speaking, discriminate against our pro- 
duction of pork, principally. We have no suggestions to make as 
regards the removal of this discrimination, any more than that of 
increasing the duties on wines and like goods from those countries. 
The South American and West Indian countries do not discriminate 
especially agninst American pork product, but their duties are, in a 
great many instances, as heavy as 100 per cent, or equal to the price of 
the goods, and sometimes over. They are large consumers of Ameri- 
can hog product, and, by reciprocity, might be induced to lower these 
duties, which would undoubtedly increase the consumption. 

8. No recent changes that we are aware of. 

9. The removal of duties by Germany and France would probably 
increase the business there from 35 to 50 per cent. 

. 10. Can not answer; were not in business six years ago. 

11. The cost of production of our goods, as to wages, is the same as 
it has been for six years. By this we mean that we have not reduced 
wages, nor has the the scale of labor been reduced (only in some local- 
ities), to our knowledge, within the past six years. 

The cost of our raw material varies considerably and would not have 
any significance whatever; that is, as far as the difference is concerned. 
The inland freight rates are the same as they were six years ago. The 
ocean freight rates bave been nominally lower than at that time. 

12. Selling prices relatively lower on everything. 

13. The principal foreign competition is from home-grown hogs in 
England, Ireland, Denmark, and on the Continent. 

14. No advantages, excepting in Denmark, where hogs are slaugh- 
tered on a sort of cooperative plan, the raiser of hogs being interested 
in packing establishments located in a particular locality, and the 
basis of their prices to the raiser of the hogs is figured on the net 
returns of what the product sells for in the different markets, princi- 
pally in England. 

15. The foreign product in England, Ireland, and Denmark sells con- 
siderably higher than American. In quality, they claim it is better. 
Our opinion is that it is not 

16. Refer you to the statistics as compiled by the United States 
Department of Agriculture. 

17. Answered in No. 4. 

18. As far as our limited knowledge in regard to reciprocity treaties 
made in 1890 goes we do not know whether it affected the trade in 
pork products or not. Should say that it did not. 

20. We favor reciprocity and tariff legislation. 



RECIPROCITY STATEMENTS. * 365 

Cudaliy Brothers Company, Milwaukee, Wis. 

2. Pork packers. 

3. Capital, $1,120,000; average, 500 persons; $6,000,000 average. 

4. Both. About half each. 

5. Direct and through commission houses. 

6. Yes, establishing agencies. Great Britain, Belgium, Germany, 
Norway, Sweden, Canada. 

7. Canada and Germany impose import duties in addition. Micro- 
scopic inspection required by Germany; prohibited altogether by 
France; Belgium imposes an import duty on lard compound. 

8. Canada advanced duties ; Belgium's duty is recent. 

9. Think would double business. 

10. About the same. 

11. All about same. 

12. About same. 

13. Mostly Canadian and Danish. In all European markets. 

14. Protective tariffs and exclusion of American meats. 

15. If there were no restrictions, could compete successfully with all 
countries. 

16. Decreased about 10 per cent. 

17. Can not estimate, as have no statistics on subject. We must have 
foreign trade: otherwise, would have an overabundance for home con- 
sumption; consequently, lower prices. 

18. Had very little effect on our branch of trade, as treaties were 
made with countries that do not use pork in any large quantities. 

19. Had very little effect on our branch of business, as treaties were 
made with countries that do not use pork in any large quantities. 

20. Yes. Think reciprocity treaties with Canada, France, and Ger- 
many would remove all restrictions against pork and beef products and 
double our exports of meats. We base this opinion uj3on the fact that 
England, with free trade, takes fully 50 per cent of all meats exported 
from United States. 



TEXTILES, ETC. 



GIROULAE OF INQUIRY TO MANUFACTURERS. 

Committee on Wats and Means, 

House of Representatives, 
Washington, D. C, March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are able 
to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed ? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture'? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade! 

10. What is the output of your establishment compared with that of 
six years ago ? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets ? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets ? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

366 



EECIPROCITY STATEMENTS. 367 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years'? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity ? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) t 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives ; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



BEPLIES. 

Phoenix SilTc Manufacturing Company, Paterson, JV". J. 

1. Our company is the Phoenix Silk Manufacturing Company of 
Paterson, N. J.; Allentown, Pa., and Pottsville, Pa. 

2. The manufacturing of broad goods and ribbons of silk. 

4. Our market is entirely at home. 

5. We sell nothing to foreign dealers. 

G. We have made no effort to extend our foreign trade, knowing such 
an attempt would be useless. 

7. We know of no discriminations or obstacles in the commercial 
regulations of foreign countries that prevent the foreign extension of 
our trade. 

8. We know of no recent changes in the tariff on silk goods in foreign 
countries. 

9. We do not think the removal or reduction of foreign customs duties 
on silk goods would enable us to export our own products, but the 
abolition of an import duty on silk goods would close our mills. 

11. There is no material difference in the cost of production as com- 
pared with six years ago. Labor may be a trifle cheaper, while raw 
material averages about the same. 



368 KECIPROCITY STATEMENTS, 

13. Competition is met with from manufacturers in nearly all countries 
of the globe, but most seriously from Japanese markets. 

14. The advantage possessed by foreign competitors over ourselves 
is in the cost of labor, which is from one-tenth in Japan to about one- 
half in Lyons. 

15. With the existing duty we can compete with foreign manufac- 
turers in the sale of medium-priced fabrics, but to enable the American 
manufacturers to compete with manufacturers of fine goods in Europe 
there should be a greater duty on expensive goods beyond a certain 
limit of value, and the Japanese goods which can not be at all made by 
American competitors should be appraised on a silver basis and the 
duty paid accordingly in gold. As the basis of Japanese production 
is silver, they come into our gold market on an appraisement which is 
only about 55 per cent of what it should be. 

16. The total of silk manufacturing in the United States has increased 
during the last six years. 

17. All the total present output in the silk line can be absorbed by 
the domestic market. There would be no surplus for export if all silk 
manufacturers were producing to their full capacity, if times were good, 
and the undervalued Japanese goods could be kept out of the country. 

18. We believe the general effect of the reciprocity treaties of 1890 
were undoubtedly favorable to the export trade of the United States, 
and that an unfavorable effect followed their repeal 

20. We decidedly favor the application of the reciprocity principle to 
tariff legislation. 



Bock River Cotton Company, Janesville, Wis. 

2. Cotton batting, mattresses and pillows. 

3. Seventy-five thousand dollars; 40; $150,000. 

4. Home. 

5. Direct. 

6. We sent a man to Canada, but tariff is against us. 

7. If Canada would reduce tariff we might get some trade there. 

8. None that we know of. 

9. We can not say. 

10. We had just started in business at that time. 

11. It only cost one-third as much to produce goods, as far as labor is 
concerned (on account of improved machinery), six years ago. 

13. We meet with no foreign competition. 

14. We do not know. 

15. Foreign competition does not hurt us in this country. 

16. Increased. 

17. About one-half. 

18. We can not say. 
20. Yes. 



Fairmount Worsted Mills, Philadelphia. 

2. We make worsted yarns. 

3. We employ about 650 hands, and turn out product valued at about 
$1,100,000 annually; as our annual output "in pounds" has increased 
in the last six years the average value per pound has declined. 

4. Our market is entirely at home. The price of labor in this country, 



RECIPROCITY STATEMENTS. 369 

that renders protection a necessity in woolen manufacturing, makes tbe 
resulting cost of goods so far beyond the cost of same thing made in 
any other country that export is quite out of the question. 
5-12. The answer to 4 makes the consideration of these unnecessary. 

13. Our only competition from foreign manufacturers is in the markets 
of the United States. 

14. Our foreign competitors have these advantages over us: (a) 
Plants of much less cost, resulting from lower wages paid carpenters, 
masons, etc., engaged in building operations, with lower costs for many' 
building materials, (b) Machinery paying a duty of 35 per cent (form- 
erly 45 per cent) here, the equipment of a foreign mill is at proportion- 
ately less cost, (c) From a and b, and lower rates on money abroad, 
the "fined charges" are less to our foreign competitors, (d) In Eng- 
land, the wage list of our mills would be cut in half; on the Continent 
we could save nearly two-thirds; and as they run the same machinery 
at the same, or at a higher rate of speed, with the same number, or a 
smaller number of hands running the machines, the advantage to the 
foreigner in the matter of wages alone is enormous. 

15. We can compete with the foreign manufacturer as to quality of 
goods; the answer to 14 shows that we are out of the race as to prices. 

16. The total product in our line of business has increased in the last 
six years. 

17. The mills making worsted yarn in this country generally ran 
throughout the year 1895 on full time, or nearly so, and the foreign 
manufacturers landed here 3,629,223 pounds of worsted yarn. It is 
certain that with all the looms of this country employed (and they have 
not been in several years past), the entire quantity of worsted yarn 
made here could be used here, and there might be need of an enlarge- 
ment of the spinning plants to meet the demand. 

18. We believe the u general effect of the reciprocity treaties made 
in 1890 " was decidedly favorable to the export trade of the United 
States. 

19. Having no practical knowledge, we do not answer this question. 

20. Yes. 



Springfield Woolen Mills, Springfield, III. 

We have no foreign trade; and while we are strongly in favor of rec- 
iprocity, our benefits are only such as accrue from general prosperity. 

Our line of business is suffering from the effects of changes made by 
the Wilson bill, and the passage of the Dingiey bill would be of vast 
benefit to us as manufacturers, as well as to the sheep men, and if the 
bill could be passed at this session the benefits would be millions of 
dollars to this country. 



John B. Stetson Company, Philadelphia. 

2. Hat manufacturing. 

3. Mexico largely; also, in a smaller way, London, England; Ham- 
burg, Germany; Paris, France; South Africa; Australia; Canada; 
Buenos Ayres, South America; Sandwich Islands. 

4. Have sent our own man to Sandwich Islands, New Zealand, New 
South Wales, Sydney, Melbourne, Brisbane, London, Hamburg, Mex- 

H. Rep. 22G3 24 



370 RECIPROCITY STATEMENTS. 

ico, and Buenos Ayres. Sales have been made and agencies established 
in all of the places visited. With the exception of Mexico, Sandwich 
Islands, and London, our agencies have been established at too recent 
a date to aid us in forming an opinion, but we anticipate a fair measure 
of success. 

5. We are not aware of any discriminations or obstacles in the laws 
or customs regulations of any foreign country that tend to restrict our 
trade any more than that of any other foreign nation entering into the 
same market. The only exception to this is that, employing higher 
labor than the manufacturers of other countries, the duty imposed upon 
our goods increases our difficulty in making sales, as to the necessarily 
high cost of our labor is added the duty upon that labor, which doubles 
our difficulties in effecting sales. 

6. We are not familiar enough with the tariffs of foreign countries to 
know what changes have been made recently. 

7. The removal of duties imposed by foreign nations upon our mer- 
chandise would remove the difference spoken of in our answer to No. 5 
concerning the question of higher wages ; without duties our higher 
wages would not be doubled as alluded to. 

8. The volume of our business is about the same as that of six years 
ago. 

9. Selling prices for qualities are the same, but not so many of the 
higher grades are sold; consequently the average selling price is some- 
what lower, about 6 per cent less. 

10. In the cost of merchandise (raw materials) our competitors have 
no advantage over us. In transportation charges to South America 
they have great advantage over us, having much better facilities and 
much lower rates, as we are informed. Their banking facilities also 
enable them to have a decided advantage over us, as all of our collec- 
tions in Australia, Europe, Africa, and South America must pass 
through foreign hands, at an extra cost to us and great loss of interest 
by delay in collections. The lack of these facilities tells heavier on us 
where time is a factor in the problem, as in these days it is necessary 
to be in almost absolute touch with your customers in order to hold 
their trade. For these reasons banking facilities are badly needed 
direct between the United States and South America, and also a line 
of steamers that shall give us close and frequent connection. 



Brigham-HopMns Company, Baltimore. 

Our little experience with South American trade encourages us to 
believe that legislation tending to encourage trade with that country 
will be a benefit. 

In Mexico it is the high duties upon our goods that prevents very 
largely our doing business in that country, and in countries of South 
America it is want of banking privileges directly with New York ; also the 
high duties upon our goods. 



Rice, Sayward & Whitten, Neio York, N. Y. 

Our business is the manufacture and sale of clothing at wholesale. 
We have no competition worth mentioning from any foreign country, 
but foreign woolen goods are being very largely used in the manu- 
facture of clothing in this country; so much so that a very large num- 



RECIPROCITY STATEMENTS. 371 

ber of the woolen mills here are shut clown or running on short time. 
Ko business as large as the woolen manufacturing business can be shut 
down, or partially so, without in a very serious measure injuriously 
affecting many other kinds of business and throwing other thousands 
<out of employment j and notwithstanding we can sell clothing to-day a,t 
less prices than three years ago, still a large proportion of the consum- 
ers of clothing, being out of work, can not buy a suit of clothes, no 
■matter how cheap. If, without returning to McKinley tariff, it could 
'be so arrangad that our woolen mills could run and give employment 
'to the thousands now out of work, it would be a great benefit to our 
business. 



Contoocook Mills Company, Hillsboro Bridge, N. H. 

2. Underwear and hosiery for men. 

3. Xone. 

4. Ko. 

5. No. 

G. Do not know. 

7. We have always considered our product best adapted to Americans. 

8. Twenty to thirty per cent more. 

9. Twenty to thirty per cent lower. 

10. Subsidized steamship lines. 

11. Answered by No. 7. 

12. My answer to this is not from actual experience, as we export 
nothing; but I have no hesitation, from my standpoint, to say what 
everybody knows: Eeciprocity treaties were favorable to export trade 
of our country and the effect of their repeal correspondingly unfa- 
vorable and hurtful, not to our export trade, but to all interests as a 
consequence. 

13. Yes. 



The Mineralized Rubber Company, New York, N. Y. 

We reply briefly, as we may throw some light on certain points. We 
handle at first-hand mechanical rubber goods, belting, packing, hose, 
and other rubber used about machinery. 

We control a mill which we do not operate in our own name. 

We presume that we handle as much export rubber as any house 
except one in this trade and we have spared no exertions for many 
years past in obtaining export business, having lists printed in many 
different languages and agents in nearly all Spanish- American countries 
and in some British colonies. 

But despite these strenuous efforts, extended over more than a dozen 
years past, we have not been rewarded with nearly the same amount of 
business and profit that an equal effort would have given us in the 
home trade. 

5. We endeavor to sell direct to foreign dealers, because home com- 
mission houses buy solely for price, while we try to sell a liigh class 
article. In Cuba, the mining parts of Mexico, Peru, and Chile we have 
been able to introduce high-class goods and get our price for them, but 
as a rule American*mechanical rubber that is exported is the worst 
kind of rubbish, well calculated to ruin our trade, and not nearly as 
good as the English or German with which we come into competition 
ill every foreign market that we have touched. 



372 RECIPROCITY STATEMENTS. 

10. Our output has increased about 40 per cent. 

11. Present cost of production somewhat smaller. Transportation 
rates considerably cheaper (can not give proportion). 

12. From 10 to 20 per cent less and profits not above two-thirds or 
three-fourths of what they were at that time. 

13. In Australia and the cape we find the British rubber goods to be 
decidedly better than most American rubber goods and on the whole 
somewhat cheaper. We are striving very hard in these markets and 
are succeeding somewhat in Africa, principally because the mine 
u bosses" are mostly American and give us (perhaps) a sentimental 
preference. 

15. In belting, packing, hose, and other articles made by machinery 
we can hold our own with the foreign manufactures, except, perhaps, 
on articles requiring a good deal of care in manufacture. Then, our 
people are too careless and don't attend to the niceties and delicate 
finish nearly as well as the foreign workmen. 

In all articles in which hand labor enters considerably into the value 
we can not compete at all with European factories. Have to stand out 
of foreign markets entirely on such goods in our line. 

10. We should judge it had increased fully one-third or one-half over 
what it stood at six years ago. 

17. We believe that double the quantity of our products could be 
produced to what could be consumed in the United States. 

18. The reciiDrocity treaties of 1890 gave tremendous boom to the 
export of mechanical rubber goods from the United States. During 
the two or three years succeeding that time we opened a great. many 
accounts which are open to-day. 

While not agreeing with the political views of the statesmen who 
inaugurated reciprocity, we believe it was one of the best things that 
was ever done for the American manufacturers. 

In conclusion, we may state that we believe that we stand in a better 
position to give the opinions on some of the points required than most 
manufacturers, because our whole time is occupied, and we keep a staff 
of over twenty clerks, in endeavoring to make markets, without being 
troubled with the numerous details connected with the manufacture, 
which are solely on the shoulders of the mill managers, and we can pos- 
sibly, therefore, give a better estimate of the difficulties in the way of 
placing a given amount of manufactures in our line than others not so 
favorably situated in that respect. 



American Multiple Fabric Company, Olneyville, R. I. 

I believe that the repeal of the reciprocity legislation of 1890 and the 
reduction of customs duties have had the effect of reducing the volume 
of our business fully 25 per cent, if not more, and believe the reenact- 
nient of both would be a great advantage to business in general. 



Ghas. A. Schieren & Co., Neiv YorJc. 

1. Our firm is Ghas. A. Schieren & Co., No. 17 Ferry street, New York. 

2. We are tanners of oak leather, and manufacturers of leather belt- 
ing and lace leather. 



RECIPROCITY STATEMENTS. 373 

3. We liave sold belting in many South American Republics, including 
Mexico and Cuba. 

4. We have made personal visits to Mexico and Cuba soliciting the 
trade, and met with fair success, and now enjoy a constantly increasing 
trade with these two countries. 

5. There seems to be no discrimination or obstacle in the laws or 
customs in these two countries which prevents us from doing business 
in our class of goods. t 

6. We know of no changes that have occurred in the tariff, except 
that Canada threatens to advance her duty from 15 per cent to 25 per 
cent on our goods. 

7. We might be able to do business in Canada by removing their 
duties on belting. In Germany and France the duties are so high they 
are almost prohibitive. 

8. The volume of trade in our last current year ending April, 1896, 
was about $30,000. 

9. Prices have declined fully 25 per cent from those current in 1890 
on our class of goods in this country. 

10. In very many South American countries we can not get shipping 
nor financial facilities, and we are compelled to ship our goods via Eng- 
land or Germany j this is a great drawback, because the customer will 
not wait the extra time that it takes to obtain our belting, although 
American belting is conceded to be superior to any made in Europe. 
We can compete with Europe and furnish a superior article at a lower 
price, and merchants are anxious to open trade with us, but we are 
handicapped in reference to shipping facilities and can not furnish the 
goods in time, being compelled to ship them in many cases via Europe, 
besides having to pay the extra transportation charges, which are some- 
times large. 

11. American leather belting is universally acknowledged as the best 
and most reliable for all critical and important drives and transmission 
of power. Engineers give it the preference the world over, and consid- 
ering quality we furnish it cheaper than our European competitors. 

12. We have had very little experience with reciprocity treaties made 
in 1890. At that time we only supplied goods through commission 
houses and foreign agencies located in New York, but for the past three 
years we have paid special attention to opening direct connection for 
our foreign trade, and have met with success and are now introducing 
our goods in several foreign markets. 

13. We have no knowledge as to the principle of reciprocity affecting 
our goods and what future bearing tariff' legislation may have on leather 
belting. Our raw material, hides, etc., are free of duty, and we enjoy 
the best and cheapest oak bark in the world, which is most abundant 
as yet in this country, so*we have nothing to fear or complain of, except 
that we believe that it will be wise to have as little tariff tinkering as 
possible because it disturbs our home market, which after all is to us 
the most valuable and important, and no doubt to any manufacturer. 
The unfortunate tariff agitations of late years have demoralized many 
industries on account of the uncertainty of things and have indirectly 
injured our trade. 

If it were possible, and we believe it is feasible, to take the question 
of tariff out of politics and make it a purely commercial question, 
establish a bureau of information at Washington furnishing reliable 
statistics to our manufacturers so that they could ascertain what class 
of goods are made and in demand in any country, and what price is 
paid for labor, expenses, etc., then the manufacturers would be able to 



374 RECIPROCITY STATEMENTS. 

figure exactly "what is necessary to compete in that market. With our 
improved labor-saving machinery, and with our intelligent and skilled! 
mechanics, we can soon surmount all difficulties and supply the demand' 
for goods. American ingenuity and Yankee grit and push will soon; 
surmount the obstacles and supply the demand for the goods. 



Lowell Manufacturing Company, Lowell, Majss. 

2. Carpets — Ingrains, Brussels, Wiltons, and Axminsters, 

3. Stock capital, $2,000,000 ; persons employed, about 2,000 j annual 
product, about $2,500,000. 

4. Market entirely at home. 

5. Practically to no one. 

6. We have made some efforts when trade was very dull in this 
country with very little success, but have made no persistent efforts 
in this direction. So long as there was a duty on wool sales abroad 
were simply impossible. Theoretically, a drawback of 99 per cent of 
the duty was allowed under the McKinley bill, but it was impossi- 
ble to estimate the amount exactly and correctly, in accordance with 
the Treasury instructions, though some exports were made of goods 
extremely depressed in this market. No exports were made by this, 
company under these conditions. 

7. I am not aware of any restrictions that will not apply to other' 
countries equally with the United States, though some may exist. I 
have the impression that such restrictions did exist as applied to cotton! 
goods sent from the United States to France. I know of no way of 
removing such restrictions, except by removing the restrictions on 
imports into this country from those nations. 

8. I am not aware of any changes. 

9. I do not see how the reduction or removal of duties imposed by 
foreign nations would help us, unless there were a discrimination against 
exports from the United States. 

10. The output has increased about 10 per cent in the last six years. 

11. Twenty per cent decrease, partly owing to substitution of more 
modern machinery, but more largely owing to reduction of duties on 
wool. 

12. Selling prices compared to those of six years ago are about 20 per 
cent less. 

13. There is practically but little competition from foreign manufac- 
tures in this market. Competition is from domestic manufactures, and 
is a very severe one. 

14. Foreign competitors have the advantage chiefly in cost of spin- 
ning and preparatory processes ; these being chiefly a matter of wages, 
which are lower in worsted manufacture in Europe. They have also 
the advantage of more extensive and varied and nearer markets for 
carpet wools. Cost of their machinery also is less, a large part of the 
worsted machinery used in this country being made abroad, subject to 
heavy duties ; and of course they have a decided advantage of acquaint- 
ance with the trade of countries to which they export goods, acquired 
by long experience. This, of course, the manufacturers of the United 
States can acquire whenever necessary, provided they are not hampered 
by needless restrictions, especially if they have access, free of all duty, 
to the full supply of wool and other raw materials. 

15. For reasons above given, generally we can not compete with for- 



RECIPROCITY STATEMENTS. 375 

eign manufactures iu matter of price, though the quality of most of the 
goods produced here is quite up to the foreign standard. 

10. The product of the United States in carpet manufactures has 
increased during the last six years. 

17. As there has been very little export trade in carpets, the produc- 
tion of the United States is adapted to its own consumption, and when 
trade is iu good condition an enormous product would he used, and sub- 
stantially the full product of the looms. When it is dull, as it is now, 
the capacity of the machinery is too great for the consumption, ana 
many looms are stopped. 

18. Reciprocity treaties of 1S90 had no effect upon the carpet trade, 
and I think very little on any branch of trade, though some causes 
operated in some products, increasing exports at or after that time, or 
vice versa. 

19. I am not aware that these treaties had any effect upon agricul- 
tural products. 

20. If judiciously applied I think the application of the reciprocity 
principle may be very valuable, and I think the doing away of restric- 
tions on the foreign commerce of the country must be greatly for its 
welfare. 

Much has been said about the importance of subsidizing lines of 
steamers to South America and other countries. I think if restrictions 
are taken off of commerce the merchants cau take care of this better 
than the United States. Moreover, the distances to South America 
are so great that the steamers merely carrying letters are of little con- 
sequence. Nearly all of our dealings with South America, and a large 
part of them even with England, are carried on by cable messages. 

The carpet trade requires annually nearly 100,000,000 pounds of car- 
pet wool, practically all of which is imported. It is of great conse- 
quence to us that these wools should enter without duty. If a duty 
must be assessed for revenue, it should be a uniform ad valorem duty. 
Ad valorem duties can be fairly applied to wools with very little risk 
of undervaluation, as their market values are well known, and many 
classes of wool are sold at public auction in Europe. Any uniform 
specific duty can not fairly be applied, because the wools come in 
exceedingly various conditions of cleanness, some shrinking less than 
10 per cent, others 50 or 75 per cent. 



Feeler, Silberberg & Co., Cincinnati, Ohio. 

2. Wholesale clothing manufacturers. 

3. Amount of capital employed, $3,000,000 ; number of persons 
employed, about 500; value of annual product, $3,000,000. 

4. We have only a home market for our output. 

5. We do not sell goods to any foreign country. 

G. Our product is such that we can not cater to foreign trade. 

7. Answer to Xo. G will cover answer ISTo. 7. 

8. Can not answer this question intelligently. 

9. Have no export trade, therefore can uot answer this question. 

10. One-third less. 

11. The wages are about 10 per cent less than they were six years 
ago, cost of raw material between 25 and 35 per cent less, and trans- 
portation rates by land, in which only are we interested, the same as 
six years ago. 



376 RECIPROCITY STATEMENTS. 

12. About 25 to 35 per cent less than they were six years ago. 

13. We do not meet with any competition from foreign countries. 

14. Can not answer intelligently, not being interested. 

15. Had no occasion to make an effort. 

16. It has decreased considerably on account of many foreign goods 
being imported into this country taking the place of our home manu- 
facture. 

17. Our product is pretty much absorbed right in this country. We 
have no opportunity of answering this question more satisfactorily, 
our dealings being confined entirely within the borders of the United 
States. 

18. Eeciprocity treaties with foreign countries ought to exist, as reci- 
procity absorbs our surplus of manufacture, and also our surplus of 
farm products, and will benefit the manufacturer as well as the farmer. 
While you will perceive that we are not directly interested in reci- 
procity, yet indirectly we are. We therefore advocate it as a method of 
exchange between this and foreign countries of such merchandise and 
machinery as we manufacture and of such farm products as Ave produce 
in surplus of our own wants — an interchange of such foreign commodi- 
ties which we can not equally produce — this being an advantage to the 
farmer, the manufacturer, and the shipper, as well as the wage worker. 
We should have continued to extend the reciprocity treaties instead of 
abolishing them. 

19. Answer in No. 18. Favorable to reciprocity. 

20. We favor the application of the reciprocity principle to tariff legis- 
lation and a law to authorize the President to negotiate reciprocity 
treaties wherever profitable and possible. We also favor a tariff' of 
sufficient percentage to protect the American industries and wage 
worker. 



J. Spencer Turner, New York, J\ r . Y. 

2. My trade is principally in cotton duck, being engaged in the man- 
ufacture of same, and also in its sale as commission merchant. 

3. My trade is not large with any foreign country, cotton duck not 
being used in many of them. I send some to Japan, to China, to South 
American points; also to England and other countries in Europe. 

4. I have made direct efforts by small consignments of these goods 
to important points, such as Calcutta; also to some points in China 
and Africa. My success has been only moderate. 

5. The placing by Germany, a few years ago, of a 10 per cent tariff 
on these goods has ruled them out of that market, where I had consid- 
erable trade, the tariff being sufficiently high to prove an effective 
embargo. To France the manufacturer has never been able to send his 
goods. The portion which goes to England is used up principally by 
American vessels. 

Cotton duck is used for the foundation of belting and of fire hose, 
also for making covers, sails, etc., and the lighter grades for clothing. 
It is strictly an American product, although in recent years some man- 
ufactories have started in England and on the Continent. The quan- 
tity made on the Continent, however, is not large enough to enter into 
close competition with the American make; but with regard to England 
and some of her provinces this condition is rapidly changing. 

6. The tariffs of Germany and of the Dominion of Canada and British 
Provinces have resulted in excluding our goods entirely, and enabling 



RECIPROCITY STATEMENTS. 377 

them to start up their manufactories and work off their surplus goods 
in a very close competition with us for the foreign trade in eastern mar- 
kets, selling in bond. In Nova Scotia they have gone into the business 
quite extensively, their principal trade being with South America. 
The goods are brought to New York and placed in bond, and are sold 
here without contributing anything to the general revenue of the 
country. They are not held for the convenience of American buyers, 
but simply to enable the manufacturers to sell in competition with the, 
American market. This they can afford to do at a lower price, in order 
to run their mills to their full capacity and keep the Canadian market to 
themselves, as by increasing the production they diminish the cost of 
manufacture. If this could be remedied, it would be a great advantage 
to our general trade. 

7. The removal or reduction of the customs duties in Germany and 
Canada would probably add 50 per cent to our business. 

8. The volume of my business, as compared with what it was six 
years ago, is about the same in quantity, but less in value. 

9. Selling prices, as compared with those of six years ago, are from 
35 to 40 per cent less; and the mills making the goods are paying no 
dividends, some of them even falling behind. 

10. Foreign competitors have an advantage over us in the cost of 
freights to the foreign ports where sold. The goods are sent chiefly in 
foreign bottoms. Many goods destined for South America are shipped 
via England, owing to the lack of facilities for direct communication; 
and even when such facilities do exist, the rate of freight is higher than 
by the other method of shipment. Of course, this, to the English shipper, 
is an advantage equal to the cost of freight from here to England. They 
have another advantage in the lower cost of labor, and their cotton 
costs them no more than we pay for ours, as it can be landed in Liver- 
pool or Manchester at the same price that it can in the eastern points 
of this country, sometimes even for less. 

11. It would be very difficult to compete with foreign merchants if 
the goods were made in quantities to give steady employment to any 
large manufactories on the other side. 

12. The general effect of the reciprocity treaties made in 1890 were 
very favorable to our trade and the export trade generally. The effect 
of their repeal was to reduce our sales ; but I would not favor reciprocity 
treaties with European countries, or with any country where manufac- 
turing is extensively engaged in. I think very highly of it with reference 
to all countries on the Western Continent. 

13. This is answered above. 



Marshall & Co., Shrewsbury Mills, Kearny, j\ r . J. 

2. Linen threads, yarns, and twine. 

3. $500,000 capital, $500,000 borrowed. People employed, 788. Value 
of animal product, $800,000. 

4. All our product is sold in the home market. 

0. We have made no effort to get foreign trade, as the wages paid 
here would prevent us competing with any prospect of success with 
the mills of the United Kingdom, France, Italy, etc. 

7. No. 

8. We have not followed the changes made in foreign tariffs, as we 
are only doing a domestic trade. 



378 RECIPROCITY STATEMENTS. 

9. No difference directly, but would affect us through our customers. 

11. Cost of production about the same. There was a loss in reducing 
the working hours per week from 57^ to 55, which has been made up 
by other small differences. 

12. Linen threads are sold on the same list, at the same discounts, as 
six years ago. Yarns and twines are about 10 per cent cheaper. 

13. There is heavy competition in the home market in threads from 
Scotland and Ireland and in yarns from Italy. 

14. We pay from two to five times the wages paid by foreign manu- 
facturers, and the foreign spinner has great advantages in cheaper mill 
furnishings (coal, dyestuff, gill pins, banding, etc). 

15. The goods we produce are second to none, but we are beaten in 
price by the importer, who has a tremendous advantage in low-priced 
labor, and very often undervalues his goods in the custom-house. 
This undervaluation is getting to be a very serious matter, as it is get- 
ting worse every year. 

16. The quantity of linen thread used has increased, but the increase 
has all been in imported goods. 

17. The linen mills in the United States could probably about pro- 
duce the thread used here (without any export). 

18. The reciprocity treaties had only an indirect effect on us through 
our customers. 

20. We do, because we think it would help the general trade of the 
country. 

21. Linen thread and yarn have never been protected to the same 
extent as other textiles. For instance, the duty on cotton is heavier 
than the duty on linen, and yet the cost of spinning linen is six times 
more than the same fineness of cotton. The result is that the linen 
trade has never been in a healthy condition, as the importer has always 
had the advantage. 



Catlin t0 Co., New York City. 

2. Southern cotton goods department. Mills located in Virginia, 
Korth Carolina, South Carolina, Alabama, and Tennessee. 

3. Brazil, Venezuela, Argentine Eepublic, Arabia, Africa, Mada- 
gascar. 

4. By correspondence, samples, and negotiations with representatives 
of foreign houses in Eew York City and Boston. 

5. The advance of tariff in foreign countries by virtue of the abro- 
gation of the reciprocity agreements, notably with Brazil. 

The writer was at that time and is a stockholder in Southern mills 
making cotton sheeting, drills, duck, etc. 

Within one year of the time Mr. Blaine had arranged with Brazil 
under reciprocity agreements, the orders from that country were suffi- 
cient to run these mills in the South for six months in advance of the 
production, night and day. 

After the abrogation the trade fell off and is now scarcely worth men- 
tioning — an order now and then. 

Of course, it does not require very much commercial knowledge to see 
at a glance that any individual firm or nation having an advantage of 25 
per cent on cotton goods, as in the case of Brazil with the importations 
from the United States, over any other individual firm or nation that 
their trade can be largely increased. In other words, the cotton nianu- 



RECIPROCITY STATEMENTS. 379 

facturers of the United States, having the advantage of an average 
of over 25 per cent below any other nation, such as England, Germany, 
Belgium, etc., the American goods of course take the precedence in the 
Brazilian market, almost to the exclusion of the other goods. 

The testimony of the New York merchants which the writer delivered 
to Mr. James G. Blaine, and which was irrespective of party, showed 
their views and desires as to reciprocity agreements. 
• 12, 13. Am in favor of reciprocity agreements with the various for* 
eign countries when it can be arranged, believing it will greatly 
increase the sale and shipment of American products. 

By reference to the official returns of the Treasury Department, the 
exports of American cottons to Brazil in 1890-91 and 1891-92 will show 
an increase in one year after reciprocity was arranged of about 4,000,000 
yards alone — that is, from 6,000,000 to 10,000,000 — and increased in the 
years following until the change in reciprocity. This will readily show 
the advantages gained by reciprocity. 



IRON AND STEEL. 



CIRCULAE OF INQITIEY TO MANUFAOTTJEEES. 

Committee on Ways and Means, 

House of Representatives, 
Washington, I). C, March 4, 189G. 
Sir: In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad; and if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed? 

8. What changes have recently occurred in the tariff's of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal aid 
in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. VVhat advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

380 



RECIPROCITY STATEMENTS. 381 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) ' 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, aud corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives ; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



EEPLIES. 
The IIP Nail Company, Cleveland, Ohio. 

2. Manufacturers of steel rods, wire, nails, rivets, tacks, etc. 

3. Have dealt but little with auy foreign country. 

4. No direct effort other than having advertised in Spanish papers 
some, with not much success. What goods we have exported have 
been, through export agents in New York, to South American couu tries. 

5. We are not; but no doubt there are obstacles in the way of duties, 
as in Germany. 

6. Do not know of changes. 

7. Can not answer; do not know. 

8. Not worth comparing. 

9. Lower. 

10. A very great advantage in transportation to South America. 

11. We can compete in quality and price if we have same low 
transportation. 

. 12. Can not answer from experience, but am satisfied that reciprocity 
treaties on articles not made in this country would be of great benefit. 
13. We do. The greatest benefit would accrue to the manufacturers 
of this country if this Government would subsidize steamships to 
carry our goods to foreign countries, and especially to South America. 



382 



RECIPROCITY STATEMENTS. 



We should have a steamer a week going to South America at least. 
As it is now we ship from this country to Antwerp and reship from 
there to South America, because that is the cheapest route to-day. 
This order of things should be changed. To aid Americau industries 
at least these two things should be done: (1) Reciprocity treaties. 
(2) Subsidize American boats sufficiently to carry goods from the United 
States to foreign countries. 



Baldwin Locomotive Works, Philadelphia. 



1. Burnham, Williams & Co., proprietors Baldwin Locomotive Works, 
Philadelphia, Pa. 

2. Locomotive engines. 

3. Capital, $6,000,000. Number of persons employed (when working 
to full capacity), 5,500. Value of annual product, $8,715,000. 

4. Our market is both at home and abroad. The following table 
shows the product in number of locomotives delivered both to the 
domestic and foreign market each year for the past ten years: 



Tear. 


Domestic. 


Foreign. 


Total. 


Tear. 


Domestic. 


Foreign. 


Total. 


]886 


508 
607 
644 
616 

802 


42 
46 
93 
211 
144 


550 
653 
737 
827 
946 


1891 


609 
604 

610 
181 
250 


290 
127 
162 
132 
151 


899 


1887 


1892 


731 


1888 


]893 


772 


1889 


1894 

1895 


313 


1890 


401 









5. Sell chiefly direct to foreign customers; only to a small extent 
through commission houses in the United States. 

6. Have made direct efforts to extend our foreign trade by members 
and representatives of our firm traveling in foreign countries, by estab- 
lishing agencies therein, and by keeping engineers and mechanics in 
the countries where we sell locomotives. The success is indicated in 
the statement under the fourth interrogatory. The countries with 
which we have done business are Mexico, the West Indies, the Central 
and South American States, Sandwich Islands, Australia, New Zealand, 
Sweden and Norway, Eussia, South Africa, and Japan. 

7. The only discrimination of which we are aware is the imposition of 
import duties in some countries, and which we presume may be removed 
by suitable commercial treaties. 

8. The only changes of which we are aware are the imposition of 
import duties. 

9. Bemoval or reduction of customs duties imposed by foreign nations 
would largely aidin extending our business. The duties imposed by some 
Governments — notably that of Canada — are essentially prohibitory. 

10. What is the output of your establishment compared with that of 
six years ago? See under interrogatory 4. 

11. The cost of production is about the same now as it was six years 
ago, as, all things considered, material, wages, and transportation are 
less, but reductions in these respects are offset by increased general 
expenses due to the smaller output at this time. 

12. How do present selling juices compare with those of six years 



ago 



? About the same. 



13, We meet the competition of English, French, German, and Aus- 



RECIPROCITY STATEMENTS. 



383 



trian manufacturers in Russia, Japan, Norway, Australia, the West 
Indies, and South America. 

14. Our foreign competitors have advantages in lower cost of mate- 
rials, wages, and ocean transportation. 

15. We compete with foreign manufacturers in quality, American 
locomotives being preferred in some countries. We compete also in 
price, the American plan of locomotive and American methods of pro- 
duction being more economical. 

10. The total product of the United States in our line of manufacture, 
during the last six years has decreased, as is shown by the following 
table: 



Tear. 


Number 

of works 
report- 
ing. 


Num her 
of loco- 
motives 
built. 


Average 
for each 
works. 


Source of information. 


1890 


15 
13 
13 
U 
30 
13 


2,300 
2, 165 
2, 012 
2,011 
695 
1,109 


153 
166 
154 
143 
69 
85 


Railroad Gazetto, 1895, page 8. 


1891 


1892 


Do. 


1893 


Do. 


1894... 


Do. 


1895 


Railroad Gazette, 1895, page 858. 





17. If the entire country were prosperous and all interests employed, 
the output of all American locomotive works could be taken by domes- 
tic customers. Such a condition, however, never has existed for more 
than a year or two at a time. Only once in the last twenty-five years, 
viz, about fifteen years ago, have all the locomotive builders been fully 
employed. 

18. The general effect of the reciprocity treaty was favorable; the 
repeal of same was injurious to our business. 

20. We favor the application of the reciprocity principle to future 
tariff legislation and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible. 



Central Iron Works, Harrisbury, Fa. 

2. Iron and steel boiler plates and universal plates for structural work. 

3. Capital, $500,000; 350 persons employed; value of the product, 
$1,200,000. 

4. Market at home. 

5. Do not sell to foreign dealers. 
G. No. 

7. No. 

8. None. 

0. Not any. 

10. About double. 

11. Lower. 

12. Comparatively, as to cost, about the same. 

13. None. 

• 14. Do not have foreign competitors. 

15. Our prices must be kept where they will not allow foreign prod- 
ucts to come in. 

1G. Increased. 



384 RECIPROCITY STATEMENTS. 

17. Our domestic markets will not consume all product aud ought to 
have foreign markets to go to. 

18. No result as to our product. 

19. Don't know; no experience. 

20. Yes ; in favor. 



Maryland Steel Company, Sparroivs Point, Md. 

2. Pig iron, steel rails, and billets; engines, boilers, and heavy ma- 
chinery ; bridges, roofs, buildings, viaducts, and other structures of iron 
and steel; iron and steel steam and sailing-vessels. 

3. Capital, $1,000,000. Plant, over $5,000,000. When in full opera- 
tion employ between 3,000 and 4,000 persons. Approximate value of 
annual product, if in full operation, $10,000,000. 

4. Market, at present, this country. Works, however, are located 
directly on tide water. Exports thus far limited to small quantities of 
steel rails, machinery, and structural material to the West Indies and 
South America. 

5. Have generally sold through domestic houses. 

6. We have made direct effort by correspondence and representation 
to extend our foreign trade in Central and South America and West 
Indies with meager success. 

7. Are not aware of such discriminations. 

8. Only aware of those resulting from the abrogation of reciprocity 
treaties. 

9. The removal or reduction of customs duties imposed by foreign 
nations would aid greatly in the extension of our export trade, and the 
opening up of such trade channels would result in the establishment of 
additional transportation facilities. 

10. At present our works are only in partial operation. The plant 
was commenced in 1887 and completed in 1892, being the most modern 
of its character in this country. The depression commencing in 1892 
and 1893 caused the suspension of operations. 

11. The cost of production at the present time in this locality is a 
little less than six years ago, owing chiefly to raw material being about 
10 per cent cheaper. Wages are practically the same as six years ago. 

12. Yery much lower. 

13. Practically none in home market, but Europeans control the for- 
eign markets. 

14. The principal advantage of our foreign competitors lies in the 
cost of labor and transportation. In the former from 10 to 30 per cent, 
according to the proportion of labor in the total cost of the manufac- 
tured article. In certain lines we can meet European prices f. o. b. In 
others — for example, shipbuilding — our costs would be from 15 to 30 per 
cent higher. The ability to secure return cargoes for vessels carrying- 
out their manufactured products gives our foreign competitors very 
great advantage over us. 

15. We can compete in quality, but, as noted above, are at greater or 
less disadvantage in respect to labor cost, as that element forms a 
greater or less proportion of the total manufacturing cost. 

16. Yery greatly increased. 

17. The present manufacturing capacity has never been tested by 
the demands of the country under normal conditions. In view, there- 
fore, of the great changes, both in supply and probable requirements, 



RECIPROCITY STATEMENTS. . 385 

that liave taken place within the past few years, we do not undertake 
to give anything worthy of being called a close estimate of these rela- 
tions. If, however, all the well located and equipped iron and steel 
works in the country were to continue in fall operation for an extended 
period, it would seem probable that at least from 15 to 25 per cent of 
the output would have to be disposed of in foreign markets. This 
assumes that ratio of producing capacity to average domestic consump- 
tion will not be less than at present. 

18. We consider very unfavorable; greatly diminishing the oppor- 
tunity for extending our foreign trade. 

19. We believe the effect has been to materially diminish the export 
of farm products. 

20. Yes; as a sound business proposition. 



Cambria Iron Company, Philadelphia. 

2. Lines of manufacture: Steel rails, blooms, billets, slabs, beams, 
angles, channels, bars, axles, forgings, merchant steel, agricultural- 
implement steel, etc. 

3. Amount of capital, $7,974,550; number of persons employed, about 
7,000; and value of annual product — value of shipments in last fiscal 
year, $7,001,045. 

4. .Do you find your market at home or abroad; and if both, in what 
proportion? Principally within the United States. 

5. Do you sell direct to foreign dealers or through commission houses'? 
Any foreign sales are made through representatives in the United States. 

6*. Have you made any direct effort to extend your foreign trade ? Not 
to any extent. 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade? No. 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture! Do not 
know. 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? Not very much. 

10. What is the output of your establishment compared with that of 
six years ago? Six years ago the product was shortened by the Johns- 
town flood; shipments for 1890, 205,336 gross tons; shipments for last 
fiscal year, 270,513 gross tons. Shipments could be increased 50 per 
cent if business confidence could be restored by a return to the former 
American policy of properly protecting home iudustries ; also, by estab- 
lishing a fixed financial policy in accord with the rest of the world, and 
by an absence of rumors of foreign war — complications which obstruct 
the flow of foreign credit. 

11. How does the present cost of production compare with that of six 
years ago, including wages, the cost of raw material, and transportation 
rates by sea and land ? Costs have been reduced by increasing product ; 
wages are somewhat less than six years ago, as the selling prices of our 
products have been so much reduced. 

12. How do present selling prices compare with those of six years 
ago? The price of rails, our principal product, averaged us in 1890 
about $35; they are to-day $28. 

H. Rep. 2203 25 



386 RECIPROCITY STATEMENTS. 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? Owing to tlie much lower wages paid in Europe 
in all branches of steel manufacture, from the mining of the ore and coal 
up through all the intermediate stages, foreign steel products can be sent 
to all American ports outside of the United States at several dollars 
per ton below what it would cost us to do, and with the present low 
duties they can also compete with us at such United States ports as 
distance makes heavy freight charges for us. The transportation com- 
panies, therefore, lose this business, as well as ourselves, owing to the 
low tariff's. 

14. What advantages do your foreign competitors have over you in 
the cost of manufacture and in transportation charges to foreign mar- 
kets? See above as to manufacture. As to transportation the ocean 
freights run comparatively empty this way, and heavy steel products 
can, therefore, frequently be carried to American ports as ballast at a 
nominal or no freight. 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? Little or nothing, owing to reasons above stated. 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? Very much 
increased in tonnage, but prices much reduced. 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the domes- 
tic market, and what would be your estimate of the natural surplus for 
export if all manufacturers in your line were producing to their full 
capacity? Products in our line could be increased unlimitedly, under 
proper conditions for commercial prosperity, and the absorption by 
home enterprises is also almost unlimited, depending on the same con- 
ditions. 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States? 
Very favorable for such export business as we had. We were exporting 
some light rails to West Indian and South American ports, which the 
abrogation of reciprocal duties stopped. 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations so far as possible? Yes; probably with American 
and eastern Asian nations. With European nations it might be inju- 
rious, as it might admit such imports as would harm us. 



The Passaic Rolling Mill Company, Pater son, N. J. 

1. The Passaic Rolling Mill Company, Paterson, 25", J. 

2. Manufacturers of structural steel and iron and bridge builders. 

3. One million dollars employed capital; 1,000 persons employed; 
$2,000,000 annual product. 

4. Eor the past two years entirely at home. 

5. Through commission houses. 

G. Yes; by agents in Mexico and the West Indies. 

7. Only in the matter of increased customs duties. 

8. Very large increase in the rates to the West Indies. 

9. It would restore to us a large business enjoyed a few j'ears ago. 

10. By increased facilities our tonnage is increased, but by lower 
prices the value remains about the same. 



RECIPROCITY STATEMENTS. 387 

11. I think all present costs included, everything- is about 50 per cent 
less than six years ago. 

12. About 50 per cent less. 

13. Principally through German manufacturers in the West Indies 
and Central American markets. 

11. Lower wages and lower transportation charges. 

15. By reason of better designs and more economical use of material 
we can overcome a difference of 25 per cent in the cost of material used 
in construction. * 

16. I think it has largely increased. 

17. My judgment is that the facilities for production in our line of 
business are such as to produce double the probable consumption, when 
all manufacturers in our line are producing to their full capacity. This 
would leave, of course, 50 per cent available for export. It is the princi- 
pal cause of trouble among American manufacturers that they increase 
facilities for production more rapidly than consumption demands, hence 
prices are kept down here from natural competition, even when the 
danger of foreign competition through unduly low duties does not exist. 

IS. Excellent, and the repeal disastrous. 
20. By all means. 



Northwestern Malleable Iron Company, Milivaukee. 

2. Malleable iron castings. 

3. One hundred and fifty thousand dollars ; 450 persons 5 $400,000. 

4. Chiefly at home. Very little export. 

5. To foreign dealers direct. 

6. Have not made much effort. All has been done by correspondence. 

7. The tariff to Canada and England is almost prohibitory on our 
goods. 

8. Do not know of any. 

9. Might increase our business one-eighth. 

10. Double. 

11. Cost of production considerably less ; wages are lower, also raw 
material; transportation rates the same. 

12. Very much less. 

13. We have no competition from foreign manufacturers. 

14. Foreign competitors, have none. 

15. The reduction of the tariff' Avould more than x>ut us on an equal 
footing with them. 

16. Output has increased. 

17. Possibly one-eighth. 

18. Favorable rather than otherwise. 

19. An improvement. 

20. Most heartily. 



Henry Disstou & Sons, Incorporated, Philadelphia. 

2. Manufacturers of saws, carpenters' tools, files, steel, etc. 

3. Capital, 84,000,000; value of annual product, $2,500,000; employ 
1,700 people. 

4. Both; home, 80 per cent; foreign, 20 per cent. 

5. Our goods are distributed both through foreign dealers and through 
commission houses, the greater proportion being through the latter 
channel. 



388 RECIPROCITY STATEMENTS. 

6. We have been and are still making direct efforts to increase our 
foreign trade by sending our own representatives to canvass and solicit 
direct, especially Australia, South Africa, and the Continent. 

7. There are some obstacles in some foreign countries that restrict 
the extension of our trade, but we can not suggest any means by which 
they may be removed. 

8. One of the changes that has occurred within the past few years 
has been the increase in the Canadian tariff, which has reacted against 
us; and the withdrawal of the reciprocity treaty with Cuba has practi- 
cally debarred us from the large trade which we had formerly enjoyed 
with that island. 

9. The renewal of reciprocity duties upon the goods we manufacture 
would aid materially in the extension of our export trade. 

10. The output of our establishment to-day is from 10 to 20 per cent 
greater than six years ago. 

11. There is not any material difference, although the present cost is 
a little less. 

12. Our selling price to-day is from 5 to 10 per cent less than six years 
ago. 

13. Our principal competition is from English and G-erman makers, 
and it extends to all the foreign markets. 

14. The advantages of our foreign competitors consist in the low rate 
of Avages which they pay, and also from the fact that their freight rates 
are cheaper. 

15. We compete with foreign makers principally in quality, as our 
goods are generally very much higher than theirs, although in the very 
cheapest lines we meet them in some instances. 

16. The production, we believe, has increased. 

17. If all the manufacturers in our line were producing to their full 
capacity we do not think the home market could take more than 70 per 
cent, and the 30 per cent would therefore have to be for export. 

18. The effect of the reciprocity treaties was very favorable to our 
export trade, and its repeal was especially disastrous to our Cuban 
business, as we practically lost it entirely. 

20. We emphatically favor the application of the reciprocity princi- 
ple to future tariff legislation, and believe that a continuance of same 
with the European and American nations, as far as practicable, will be 
of advantage to our manufactures. 



The Brush Electric Company, Cleveland, Ohio. 

We sell through our agents to foreign countries. We have not a very 
large foreign trade, but a very extended one. We find difficulty in com- 
peting with the English and German manufacturers of electrical appa- 
ratus. They undersell us in almost every country. 

We believe that the quality of American electrical apparatus is supe- 
rior to that of English and German, but their labor is so much lower 
than ours that they make lower prices with as much margin of profit 
as we make. 

If the tariff were taken off of electrical machinery in this country, we 
believe that we would be swamped. The mere approach to or sugges- 
tion of the idea and the uncertainties connected with it during the 
last presidential campaign on the part of certain parties unnecessary 
to mention has cost us millions of dollars. 

We favor the application of reciprocity to future tariff legislation, 



RECIPROCITY STATEMENTS. 389 

We believe it a most excellent business idea. We carry it out, and we 
believe every other seller and purchaser carries it out in a large or a 
small way in the every-day affairs of business life. Therefore, we see 
no reason, if it is a good principle universally applied, why it should 
not act as well in the case of one nation dealing with another. 

In definite reply to question No. 17, we beg to state that none of the 
great factories of the country have been run to their full capacity dur- 
ing the past two years. Our factories are almost universally enlarged 
and new capital invested therein as our business increases, so that in/a 
general way we might say that if the times were equal to what they 
were in 1892 the electrical factories of this country would be about 
equal to our domestic market. But we are all prepared to increase our 
investment and enlarge our business. Our Government does little, if 
anything, toward encouraging our foreign trade. 

In reply to question No. 18, we beg to state that the effect of the reci- 
procity treaties of 1890 was most favorable and their repeal most 
unfavorable to the electric business. 



Scovill Manufacturing Company, Waterbury, Conn. 

2. Sheet brass, brass wire, metal buttons, lamps, kerosene burners, 
sockets for electric burners, etc. 

3. Capital, $384,475; net assets, $2,000,000; employees, 1,800. 

4. Two per cent foreign, 98 per cent domestic. 

5. Through commission houses only. 

6. No. 

7. 8, and 9. Have never informed ourselves on these subjects. 

10. Thirty-five per cent increase in value; 60 per cent in quantity. 

11. Wages unchanged; material declined in proportion of 17 to 11. 

12. From 10 to 50 per cent less. 

13. The competition abroad is from German, English, French, and Bel- 
gian manufacturers. The foreign competition in the domestic market 
is from French and German manufacturers mostly. 

14. Cheaper labor. 

15. Quality equal, if not superior, to anything made abroad, with the 
exception of fashionable novelties in buttons that come from France 
and Germany. Can hold the domestic trade by help of the tariff, and 
can export some few goods in competition with European manufac- 
turers, but only such as are producted by highly developed machinery 
and sold at a very small profit to ourselves. 

16. It has increased. 

17. We think that the manufacturers in the United States in our line 
have built up their facilities to meet the present demands, which have 
come mostly from the domestic market, and that the average facilities for 
manufacture are in proportion to the average demand from such sources. 
There would therefore be no surplus for export, as a rule, but increased 
demand, if likely to be permanent, would cause them quickly to increase 
their plants to meet it. 

18 and 19. We are not informed. 

20. We do not think reciprocity treaties with European nations would 
be likely to benefit us, but with American nations who are not manu- 
facturers reciprocity treaties which would induce them to receive our 
manufactured goods on more favorable terms than competing European 
goods Avould undoubtedly result in the extension of our trade and 
eventually enable us to secure a very strong foothold in such countries. 



890 RECIPROCITY STATEMENTS. 

Hibbard, Spencer, Bartlett & Co., Chicago. 

2. Hardware, metals, sporting goods, bicycles, and cutlery. 

3. Principally Mexico. We are receiving inquiries and some orders 
from Argentina and a few other South American Republics. 

4. By advertising, circulars, correspondence, and traveling salesmen 
in Mexico. 

5. We suggest, if the matter was properly handled, a more liberal 
construction could be secured in regard to the specification or declara- 
tion of hardware, cutlery, etc. There seem to be numerous technical- 
ities which impede commerce without apparently helping the Mexican 
tariff schedule, and we think a well-posted man could use influence to 
correct this. To illustrate: On lamp shades made of silk or similar 
material there is a small wire frame with a narrow strip of brass to 
support the shade; the main construction is of silk, but the tariff pro- 
vides that that little piece of brass shall be declared on consular invoice 
separate from the silk. This entails expense and great annoyance, and 
only illustrates a number of other items of a similar nature. 

6. We are occasionally receiving notices of minor changes in the 
Mexican import tariffs, but they are so small that they cut no figure. 

7. The removal or substantial reduction of the custom duties, we 
think, would greatly increase our trade. 

8. Very much larger. 

9. Our entire line of goods is from 20 per cent to 40 per cent lower. 

10. Our foreign competitors handle goods that are manufactured by 
much cheaper labor and from free raw material. The freight from 
English, German, and French ports is lower than it is from Chicago; 
heavy freight is often carried as ballast by vessels that return with 
timber, cotton, and grain. 

11. The quality of our goods we regard as much superior to those 
furnished as a rule by foreign merchants. Unfortunately, on account 
of the causes named in our answer to the preceding question, the for- 
eigners are often able to undersell us. 

12. We regard the general effect of the reciprocity treaties in 1890 
as favorable to the export trade of the United States. As we were not 
largely engaged in export business at that date, Ave have no record as 
to its actual effect unon our business. 

13. We do. 



The Alford and Berkele Company, New York. 

Our experience was that during the time the Blaine reciprocity trea- 
ties were in force the trade between this country and those with which 
the treaties were in force was very much better than at any time previ- 
ous or since the treaties have been abrogated. There was a very con- 
siderable increase in the business that we did with the export houses 
dealing with the countries with which the treaties were in force, and 
more especially between this country and Cuba. There never was a 
time during all the years since we have been in business that we had 
so much trade, from Cuba particularly, as we did during the existence of 
the treaty; and our opinion is that nothing was ever done by this Gov- 
ernment to help the export trade (especially in our particular line) so 
much as the reciprocity treaty, but as soon as the the treaty was abro- 
gated we found that the trade dropped off wonderfully — it almost 
stopped for a long time. 



RECIPROCITY STATEMENTS. 391 

We had quite a number of orders ill the house ready to be shipped, 
and orders at the factory which were canceled, and we were informed 
by several parties in the export trade that nearly all orders that they 
had in hand, especially from Cuba, were canceled. One party advised 
us that the commissions amounted to at least $2,000 on the orders which 
they had canceled , and, as we understand, the commissions did not 
exceed 5 per cent. Several other exporters told us that they had orders 
for large quantities of goods canceled and that they lost considerable 
money from the cancellation of the orders. t 

We had conversation with quite a number of exx>ort merchants and 
everyone that we talked with was very much pleased that the reci- 
procity treaty was put in force, as the trade was very much increased, 
but that they lost a good share of that trade when the treaty was abro- 
gated. We think that you would find upon investigation that this was 
the case with nearly all exporters to the Spanish-speaking countries. 



Nicholson File Company, Providence, R. I. 

2. Files, rasps, and filers' tools. 

3. Capital, $500,000; 800 to 1,000 hands ; annual product, $700,000. 

4. Market both at home and abroad. At present home market, 
including Canada, is over 95 per cent, though foreign trade is increasing. 

5. Both. 

0. Yes; by personal traveling and canvassing by our president, 
advertising, sending of agents, etc. We have an office and warehouse 
in London. Fair success in Great Britain, France, and Holland. Some 
orders from Germany direct. A beginning with Japan. Good start 
with India through agents. Some trade with South Africa, and various 
parts of South America and Central America through commission 
houses. 

7. Tariffs of certain countries undoubtedly check us. We could do 
more with Canada if her tariff on files did not exist. Certain parties 
there are trying to increase the tariff on files from 35 to 50 per cent in 
the interest of the Globe File Company, the sole file manufacturer of 
any standing in Canada, and not large at that. 

If this increase is made we shall be much interfered with, as our 
business in Canada is now considerable, and would be greater if the 
present tariff was even lower. The tariff of Germany, where many 
cheap files are made, is a hindrance to the extention of our trade, as also 
with Belgium and France. 

8. None that we are aware of. 

9. Very materially in Canada, Germany, Belgium, France, and Aus- 
tria, countries which produce files and rasps to more or less extent. 
Under reciprocity, where we would pay a lower tariff than Great Britain 
and Germany, we would be greatly assisted. 

10. Forty per cent greater. 

11. Wages and raw material slightly less; transportation about the 
same. Cost of production about 5 to 7 J per cent less. 

12. Present selling prices about 18 per cent less than those of six 
years ago. 

13. In this country we meet competition from English and Swiss files 
in fine grades, the so-called Swiss pattern for jewelers' use, etc. We 
would be very much assisted in this line by an increased tariff. Iu 



392 RECIPROCITY STATEMENTS. 

these small files labor is so important an element in the cost that cheap 
European labor gives foreign manufacturers great advantages. 

In all foreign countries we meet competition from English files, and 
from German files in many countries. 

14. English and German makers have been long established in foreign 
markets, understand them thoroughly, and the people are accustomed 
to their products. Our goods are liked wherever they go. 

Foreign makers get labor much cheaper, but are inferior to us in 
machinery. They have better steamship communication with all parts 
of the world, and cheaper rates. We must have better, more frequent, 
and cheaper steam ship service to South America, Africa, and other 
countries in order to compete successfully with England for foreign 
trade. We are also in great need for banking facilities. 

15. In quality our files are fully the equal of any, and we are at no 
disadvantage in this respect; in price we can compete successfully in 
the regular lines because of our better machinery, in spite of foreigu 
cheap labor. In the small Swiss pattern files our quality is up to the 
foreign, but we are at a disadvantage in this line in prices, as above 
stated. 

16. Probably decreased about 15 per cent. 

17. Perhaps 80 per cent of the present possible capacity of this 
country could be absorbed by home markets. We should suppose that 
there is 20 per cent surplus for foreign markets, if all makers produce 
to full capacity. 

18. Yery favorable, indeed, to this business. Plans formed under 
them were checked by their repeal. We should like similar ones made 
again. 

20. We do, by all means. Eeciprocity treaties with Mexico, South 
and Central America would assist us greatly, as English and German 
makers have their trade now. 



Peerless Manufacturing Company r , of Louisville, Ky. 

2. Manufacturers of fireplace furniture. 

3. Capital, $200,000; 300 employees; value of annual product, 
$200,000. 

4. Have trade mostly in the United States. Have some foreign trade 
in England, Australia, China, and Canada. 

5. Foreign trade sold through dealers or commission houses, except 
in Canada. 

6. Have made direct efforts to extend foreign trade by circulars and 
catalogues. 

7. A duty of 35 per cent in Canada enables foreigners to steal our 
patents and make the goods cheaper than we can produce them. 

8. Know of no change in foreign tariff relating to our line of manu- 
facture. 

9. A reduction of the tariff' duties would enable us to supply the 
foreign markets. 

10. Sixty per cent increase. 

11. Twenty per cent decrease. 

12. Fifty per cent decrease. 

13. Greatest competition in Canada and England. 



RECIPROCITY STATEMENTS. 393 

14. Advantages in transportation greatly in favor of foreign compet- 
itors; also in cost of manufacture. The only advantage we have is the 
making a finer class of goods. 

15. We can compete with the world in quality, and, if tariff was 
reduced, in prices. 

16. Has increased. 

17. The business could be increased 75 per cent if free access could be 
had to foreign markets. 

18. Reciprocity treaties are favorable to our export trade ; their repeaj 
an injury so far as foreign goods were introduced into this country in 
competition. 

20. Yes ; we favor the reciprocity principle as applied to any future 
tariff legislation. 



The Reading Stove Works, Reading, Pa. 

2. Stoves, ranges, and furnaces. 

3. Five hundred and thirty-seven thousand dollars; on the average 
about 450; about $550,000. 

4. We sell less than one per cent of our product outside of the United 
States. 

5. The goods we ship to foreign countries are usually sold through 
commission houses. 

6. We have made no particular effort to extend our foreign trade. 

7. All tariffs are obstructions to trade and the tariffs existing in for- 
eign countries on imports into those countries are obstacles to trade. 
Removal of these tariffs would facilitate trade. 

8. We do not know of any recent changes in the tariffs of foreign 
countries. 

9. Our answer to No. 7 will serve as an answer to this question. 

10. Our product has increased in 1895 about 40 per cent over our 
product in 1889. 

11. Our total cost of producing goods is about 5 per cent lower now 
than in 1889. 

12. Our present selling prices average about 4 per cent lower than in 
1889. 

13. We do not feel any competition from foreign manufacturers in oar 
line in the United States. We do not think we would feel any com 
petition from foreign manufacturers even if there was no tariff whatever 
on the lines of goods made by us. 

14. The information we have in regard to costs of manufacturing 
stoves in Germany and England lead us to the opinion that we can 
produce these goods a.t lower cost in the United States than they can 
be produced in the two countries named. 

15. Our prices and quality are in our favor in competing for trade in 
onr line in foreign countries. The chief barrier to selling goods of our 
manufacture in foreign countries is the difference in tastes and customs. 
Almost every country has its own peculiar ideas as to goods, and it is 
difficult to change these ideas. If a country has been using the crude 
and clumsy goods made in England, it is difficult to persuade them to 
use the handsomer and more convenient goods made in the United 
States, even though the prices are the same. The power of fashion and 
whim is also felt within the United States, one section of a country 
frequently taking goods of different form and style from another section 
without any reason whatever except established custom. 



394 KECIPROCITY STATEMENTS. 

16. The total product of stoves in the United States has increased 
during the last six years. 

17. This is a very large question, and I am of the opinion that there 
is no real overproduction of goods in our line in the United States, as 
what would seem to be an overproduction is due to maladjustment in 
the distribution of wealth. Under right and just economic conditions 
I am confident that the demand for stoves would be much greater than 
the present facilities of manufacturers could supply. 

18. We observed no effect from the reciprocity treaties of 1890. 

20. I do not favor the application of the reciprocity principle to 
future tariff legislation. I am strongly in favor of absolute free trade, 
and believe that it would be far better for the manufacturing interests 
of this country than any other treatment of the trade question. Not 
only do I believe that the tariff on imports is wrong in so far as it 
interferes with trade, but I believe that a tariff is a pernicious method 
of raising revenue. 



8. Witks Manufacturing Company, Chicago, III. 

2. Hot-water heaters, steam generators, etc. 

3. Mexico, Italy, Holland, British America. 

4. Through New York exporting agencies, circulars, etc. 

5. No. 

6. None that we know of. 

7. None that we know of. 

8. An increase of 200 per cent. 

9. About 20 per cent less. 

10. Cheaper labor. 

11. Better in quality but higher in price. 

12. (a) Favorable; (b) unfavorable. 

13. Yes. 



P. K. Dederick. 

2. Chiefly baling materials and bands. 

3. Nearly all countries, to a limited extent. 

4. Circulars all over and advertising in export papers. 

5. None that I know of. 

6. None. 

7. Immaterial. 

8. About the same. 

9. We discount about 10 per cent or more. 

10. Chiefly in transportation and then by being in the way of trade. 
Sometimes we have to ship by way of competitors to reach markets. 

England is connected by ferry to all points, and we have very bad 
communications. Suppose you start a dry goods store for retail at 
Madison Square, New York City, and I open another north of the 
Harlem. That is the situation exactly. When we get up a volume of 
trade that will bring us in touch, and with corresponding transporta- 
tion facilities direct, then we will get our share of all trade and some 
more. However, in all lines, as a first consideration, we want to keep 
our home trade, as that is worth more to us than trade of all the world 
besides, hence no reciprocity with any country will compete for home 
trade. 



RECIPROCITY STATEMENTS. 395 

The Pratt & Cadjj Company, Hartford, Conn. 

2. Iron and brass valves, water hydrants, and iron foundry. 

3. Capital of company, $400,000; annual product, $400,000. 

4. Ninety one-kundredths at home. 

5. Agents. 
0. No. 

7. None whatever. 

8. None. 

9. None whatever. ' 

10. Larger. 

11. About the same. 

12. In favor of the purchasers. 

13. None. 

14. They have cheaper labor. We overcome this by implements, 
special tools, and machinery. 

15. Can equal them. 
1C. Increased. 

17. All of it. 

18. Of no effect. 

19. None. 

20. I favor it on general principles. 



Dean Bros., steam pump worlcs, Indianapolis, Ind. 

We occasionally ship a pump to Canada, Mexico, or South America. 
Our export business is insignificant. We therefore pass over your 
questions except No. 20. In answer to this, allow us to say that we 
emphatically approve of the application of the reciprocity principle to 
future tariff legislation. We believe a return to the protective- tariff 
policy, combined with the extension of reciprocity treaties as instituted 
by General Harrison's Administration, would, in a few months, make 
this the most prosperous nation on the globe. We think that the pres- 
ent Administration has done every thing possible to interfere with 
domestic and foreign trade. 



Atlas Tack Corporation, Boston, Mass. 

During the reign of reciprocity our foreign trade grew rapidly, but 
since its abrogation our export business has shrunk. In this particular 
line — tacks, brads, and nails — reciprocity was a great help to us. 

We are the largest makers in the world in our line. 



Edge Moor Bridge Worls, Wilmington, Bel. 

We manufacture steel and iron superstructures for railway and high- 
way bridges and viaducts, elevated railway superstructures, and struc- 
tural framework for buildings and roofs of buildings. 

The amount of capital employed is about $1,200,000. Number 
employed, from 500 to 800'; the value of the annual product, from 
$2,000,000 to $3,000,000, depending upon the condition of trade. 



396 RECIPROCITY STATEMENTS. 

Our market is almost exclusively at home; occasional sales are made 
through exporting houses for abroad, but these form but a small per- 
centage of the value of our business. 

During 1882, 1883, and 1884 we made direct effort to reach the Austra- 
lian market by sending a representative to that country, and obtained 
through his efforts several contracts for railway and highway bridges in 
Victoria and New South Wales. These were taken in competition with 
English manufacturers. Our success in these particular instances was 
due, first, to the difference in the designs of the structures, and next, 
to the fact that the raw materials were purchased in Europe, brought 
to our works and manufactured, and the import duty refunded to the 
extent of 90 or 95 per cent. Our experience with that market was that 
sufficient work could not be obtained to justify the maintenance of a 
competent engineering and contracting office in that country. 

We are not aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of our foreign trade as compared with other exporters to the 
same markets. 

The output of our establishment as compared with that of six years 
ago is practically the same. 

The present cost of production as compared with that of six years ago 
is considerably less, due mainly to the decreased cost of raw materials, 
our own wages and transportation rates remaining practically the same 
now as then. 

Present selling prices are very much lower than those of six years ago. 

Our market being practically confined to the home market, we meet 
no competition whatever from foreign manufacturers. 

We are in favor of the application of the reciprocity principle to 
future tariff legislation, and the enactment of a general law authorizing 
the President to negotiate reciprocity treaties with both European and 
American nations so far as possible. 



Livingston JSFail Company, New York. 

4. Both home and abroad, but mainly home; had a fair and growing 
trade in South America and Cuba, but owing to abrogation of reciproc- 
ity treaty trade with Cuba ceased entirely, and was largely reduced 
from South America. 

5. I sell to dealers direct ; also through commission houses. 

6. Yes, by sending samples to South America, Cuba, Australia, and 
New Zealand, and have met with good success. 

7. Yes, the duties on horseshoe nails, in which I am a large dealer — 
much the largest in the country. Since the abrogation of the reciprocity 
treaties they have been admitted into Cuba and South American ports at 
less rates than from New York, and I would suggest the reenactment 
of those treaties if possible. 

9. The removal of duties which discriminate against the United States 
would largely increase the export trade. 

12. Much lower. 

13. Competition is mainly from Sweden, Norway, and Germany. I 
was the first one to introduce machine-made horse nails into Cuba and 
many of the South American countries. The trade was increasing satis- 
factorily until American machines were taken to Europe, when, in con- 
sequence of the low price of iron and wages, the European makers 



RECIPROCITY STATEMENTS. 397 

undersold me in the countries named, but when the reciprocity treaties 
were enacted the trade was coming back here rapidly, and was as rap- 
idly stopped on their abrogation. 

14. In lower cost of material and wages. As an instance of freight, 
would state that freight was obtained on 5,000 pounds nails from Got- 
tenberg, Sweden, to Memphis, Tenn., at 36 cents per 100 pounds, when 
it rales about 60 cents from New York. 

15. Can not compete with foreign labor and material. 

16. In consequence of the introduction of trolley cars, bicycles, etc.,. 
sales will not average any larger than, say, six years ago. 

17. The makers of nails in this country have a producing capacity of 
double the quantity now used here, and therefore need an export mar- 
ket to run factories in full force. 

18. This is fully answered in No. 13. 
20. Yes, most decidedly. 



James M. Swank, General Manager American Iron and Steel Association, 

Philadelphia, March 20, 1896. 
Sir: In reply to your letter of March 4, which, however, was not 
received until March 12, I have the honor to submit the following indi- 
vidual views concerning reciprocity treaties between our Government 
and the Governments of foreign countries. 

I am, sir, very respectfully, your obedient servant, 

James M. Swank, 
General Manager of the American Iron and Steel Association, 
Hon. A. J. Hopkins, Washington, D. O. 



The questions of commercial reciprocity, free sugar, and a sugar bounty, belong 
together, because to-day the policy of reciprocity in tariff legislation involves the 
abandonment of protective duties on sugar, and it is not to be supposed that the 
Republican party, which will probably be responsible for the tariff legislation of the 
immediate future, will seriously propose to revive the reciprocity feature of the tariff 
act of 1890 without also reviving its sugar-bounty feature. Sugar can not be made 
free under reciprocity without destroying our sugar industry unless a bounty be paid 
to our sugar producers. It may be assumed that the Republican party will not aban- 
don our sugar industry. 

There is no mention of reciprocity in any of the platforms of the Republican party 
prior to the Presidential campaign of 1892, when the Minneapolis convention of that 
year indorsed "the Republican policy of reciprocity'' which had been incorporated 
in the tariff act of 1890, but it did not mention the sugar bounty policy which had 
been incorporated in the same tariff, nor has a sugar bounty or any other bounty for 
the benefit of any of our productive industries ever been approved by a Republican 
national convention. The reciprocity and sugar bounty legislation embodied in the 
tariff act of 1890 was, therefore, not only legislation which had not previously been 
recommended by a Republican national convention, but the sugar-bounty feature 
of that legislation ha* not since been approved by the same authority. Here is an 
anomaly. Reciprocity and a sugar bounty must stand or fall together under a 
Republican Administration of the Government, and yet one has been approved and 
the other has not been approved. 

This country had experimented with the policy of reciprocity in two instances 
before the passage of the tariff act of 1890 — a reciprocity treaty with Canada, con- 
cluded in 1854 and continuing in force until 1866, and a reciprocity treaty with 
Hawaii, concluded in 1875 and still in force. Our experience with Canadian reci- 
procity was not satisfactory to this country. It is generally understood that the 
reciprocity treaty with Hawaii was entered into for other than commercial consid- 
erations. 

The sugar-bounty provision of the tariff act of 1890 was an entirely new feature 
in our tariff legislation. We know of no precedent for the payment of a bounty by 



398 



RECIPROCITY STATEMENTS. 



the General Government for the promotion of any productive American industry. 
The nearest approach to the adoption of a policy of this character was in the coun- 
try's early history, when a bounty was paid to promote our fishery industry, but 
which also promoted the building up of an American merchant marine and the train- 
ing of sailors for the American Navy. 

When the Ways and Means Committee of the House of Representatives framed the 
bill which afterwards, with amendments, became the tariff act of 1890, it repealed 
the previously existing protective duties on sugar and provided a bounty of 2 
cents a pound for the home producers of cane, beet, and sorghum sugar, but" made 
no reference to reciprocity. The bill passed the House on May 21, 1890, with the 
sugar-bounty provision included. It was referred to the Senate Committee on 
Finance on May 23 and reported from that committee to the Senate on June 18, with 
amendments, but with the sugar-bounty provision unchanged, except that it was 
made to apply to maple sugar. No reference was made to reciprocity. That feature 
was also omitted from a second revision of the bill by the Committee on Finance, 
which was reported back to the Senate on September 6. 

On September 10 the bill passed the Senate, and it then for the first time contained 
the reciprocity provision, which was inserted at the instance of Mr. Blaine, the Sec- 
retary of State, supported by President Harrison. In the bill as it passed the Senate 
the House bounty of 2 cents a pound on sugar was left unchanged, except that the 
maple-sugar amendment was approved. In the conference committee the Senate 
reciprocity amendment was approved, but the sugar bounty was changed so that 
the producers of sugar testing 90 degrees and upward should receive 2 ceuts a 
pound, while the producers of sugar testing less than 90 degrees and not less than 
80 degrees should receive If cents a pound. In this form the bill passed both Houses 
and became a law on October 1, 1890, taking effect on October 6 of the same year. 

Soon after the tariff act of 1890 went into effect President Harrison opened nego- 
tiations with various foreign countries u producing and exporting sugars, molasses, 
coffee, tea, and hides," and during the years 1891 and 1892 many reciprocity treaties 
were negotiated. The principal treaties were with sugar-producing countries. 
Most of the treaties were with South American, Central American, and West Indian 
countries or their European representatives. With Mexico and the Dominion of 
Canada treaties were not negotiated. All these treaties were abrogated by the 
terms of the tariff act of 1894. None of them were in force four years; some were in 
force less than three years. 

We have obtained from the Bureau of Statistics of the Treasury Department a 
statement showing the total exports of domestic merchandise for five selected periods 
from the United States to the various countries south of us with which reciprocity 
treaties were negotiated under the tariff act of 1890, and also to Canada and Mexico. 
These periods cover two fiscal years prior to the passage of that act, two fiscal years 
during which all the reciprocity treaties were in force, and one fiscal year during 
which the treaties were in force only two months. The statement is as follows: 

Table showing the total value of the exports of domestic merchandise from the United States 
to various foreign countries in the fiscal years ending with June 30, 1887, 1890, 1893, 1894, 
and 1895. 



Country. 


1887. 


1890. 


1893. 


1894. 


1895. 




$553, 179 

425, 741 

701,151 

477, 125 

6, 465, 030 

1, 014, 414 

10,138,930 

I, 707, 241 

8, 071, 653 

1, 423, 211 

30, 977, 675 

32, 328, 036 

7, 2G7, 129 


$1, 326, 388 
522, 631 

1, 270, 073 
886,231 

8, 074, 433 

926, 651 

12, 669, 509 

2, 247, 700 
11, 902, 49G 

2,011,122 


$1, 713, 142 

442, 907 

812,654 

1, 118, 054 

7,912,341 

1, 108, 733 

23, 604, 094 
2, 502, 788 

12, 339, 584 
1, 953, 012 


$1, 610, 509 

537, 463 

814, 012 

1, 059, 292 

8, 387, 220 

1,715,782 

19, 855, 237 
2, 705, 646 

13, 827, 914 
2, 360, 938 


$2, 596, 032 
615, 009 






967, 329 
1, 236, 595 






7, 667, 561 




1, 318, 919 




12, 533, 260 




1, 820, 203 




15, 135, 125 




1, 684, 830 






Total 


41, 837, 234 
37, 327, 963 
12, 666, 108 


53, 507, 309 
43, 026, 846 
18,891,714 


52, 874, 013 
50, 040, 870 
12, 441, 805 


45, 574, 863 




47, 787, 501 




14, 582, 484 







This statement shows that our merchandise exports to the countries south of us 
increased over 35 per cent from 1887 to 1890 without reciprocity; increased about 28 
per cent from 1890 to 1893 under reciprocity ; declined slightly from 1893 to 1894 
under reciprocity; and declined over 13 per cent from 1894 to 1895 with but two 
months of reciprocity. The decline in the exports in the fiscal year 1895 was chiefly 
due to the insurrection in Cuba, but this influence did not cause the decline in the 
exports to that island in the fiscal year 1894, during which the reciprocity treaties 
were in force. 



RECIPROCITY STATEMENTS. 



399 



The statement also shows that our exports of domestic merchandise to Canada and 
Mexico, with which countries reciprocity treaties were not negotiated under the 
tariff act of 1890, have increased very rapidly since 1887, although there was a 
decline iu our exports to Mexico in 1891 and to Canada in 1895. To both countries 
the increase in our exports since 1887 has been more marked than the increase in our 
exports to the reciprocity countries south of us during the same period. 

The table which we have given surely does not prove that the adoption of a reci- 
procity policy in the tariff legislation of 1890 materially increased our total export 
trade with reciprocity treaty countries to the south of us, if it increased this trade 
at all. If our export trade with Canada and Mexico increased without reciprocity 
more rapidly from 1887 to 1894 than our export trade with the reciprocity countries 
mentioned in the table, it would seem to be reasonable to suppose that some other* 
cause or causes than reciprocity contributed to the enlargement of our exports to 
the reciprocity countries. Upon careful inquiry it maybe found that we have been 
increasing our export trade with all the countries mentioned, Canada and Mexico 
included, because of the extremely low prices of our agricultural and manufactured 
products in recent years, and because also of their excellent quality. 

The course of our export trade in iron and steel and manufactures of iron and steel 
in recent years, to which we will be excused for making special reference, does not 
indicate that this branch of our export trade has been much benefited under the 
late reciprocity treaties. The countries south of us with which we have had reci- 
procity treaties are small buyers of iron and steel since their railroad systems have 
been built. Without going into minute details, the subjoined table gives the value 
of our exports of iron and steel and of manufactures of iron and steel to all countries 
in the calendar years from 1887 to 1895, not including agricultural implements. The 
years mentioned cover substantially the same period of nine years as that referred 
to in the table already given. 



Years. 


Exports. 


Years. 


Exports. 


Years. 


Exports. 


J887 


$16, 235, 922 
19, 578, 489 
23, 712, 814 


1890 


$27, 000, 134 
30, 736, 507 
27, 900, 862 


1893 


$30, 159, 363 
29, 943, 729 


1888 


1891 


1894 


1889 


1892 


1895 


35, 002, 838 











From this table it will be seen that our exports of the articles mentioned increased 
over 66 per cent in the four years from 1887 to 1890 without reciprocity; that from 
1891 to 1894 there was an actual decrease under reciprocity; and that in 1895 there 
was an increase over 1894 of over 17 per cent without reciprocity. 

It is a pertinent and an important inquiry whether this country has been injured in 
any way by the adoption of the reciprocity policy of 1890. We think that the facts 
warrant the conclusion that we have been very greatly injured by the joint measures of 
reciprocity, free sugar, and a sugar bounty. The Government has lost by this policy 
many millions of dollars of revenue that it greatly needed. The tariff act of 1890 
was in part entitled u an act to reduce the revenue," and that result it accomplished. 
Wise as was this act in nearly every particular, we have always contended that it 
was most unwise in abandoning the sugar duties embodied in previous tariff legisla- 
tion and which had been a source of large revenue to the Treasury, and providing in 
their stead for the payment of a sugar bounty. 

It is true that these two features of the act in question might have been adopted 
if a reciprocity policy had never been proposed, but having passed the House they 
paved the way for the reciprocity amendment in the Senate; indeed they were the 
direct cause of it. There could have been no reciprocity treaties without free sugar. 
Nor can there be any restoration of reciprocity without free sugar, and free sugar 
under a Republican administration of the Government means, as we have already 
said, a sugar bounty. 

From the annual reports on commerce and navigation of the Bureau of Statistics 
of the Treasury Department we have compiled the following suggestive table show- 
ing the receipts of the Treasury from duties on sugar in the three fiscal years imme- 
diately preceding the enactment of the tariff act of 1890 and in the three full fiscal 
years suceeding its enactment: 



Fiscal years. 


Duties collected. 


Fiscal years. 


Duties collected. 


1888 


$50,647,014.17 
54, 896, 437. 38 
53, 985, 873. 85 


1892 


$76, 795. 14 
163 956 25 


1889 


1893. . 


1890 


1894 


250, 763. 53 







400 RECIPROCITY STATEMENTS. 

It is fair to assume that the total loss of revenue to the Treasury from sugar dur- 
ing the almost four years in which the tariff act of 1890 was in force exceeded 
$200,000,000 and averaged above $50,000,000 annually. 

But the harm done to the Treasury by the repeal of the sugar duties is not all told 
in the figures given above. To the loss of the revenue from sugar duties must be 
added the sums annually taken directly from the Treasury to pay sugar bounties 
in the fiscal years 1892, 1893, and 1894, and the fraction of the fiscal year 1895, 
extending from July 1 to August 28, 1894. These payments were as follows: 1892, 
$7,342,077.79; 1893, $9,375,130.88; 1894, $12,100,208.89; 1895, $966,185.84; total, 
$29,783,603.40. 

The fatal error that is embodied in the reciprocity policy was its abandonment of 
the policy adopted by the fathers of the Republic of imposing duties at the custom- 
house that should be uniform in their application to the products of all countries. 
In lieu of this policy, which was established in our first tariff act, and which had 
been sanctified by one hundred years of successful trial, there was substituted the 
British policy of commercial treaties, and this was done, not to protect and preserve 
the home market for home producers, which is the very essence of the protective 
policy of the fathers, but that foreign markets of less value than the trade of one of 
our great States might be captured. The old school of protectionists always taught 
that foreign markets were to be captured by the excellence and cheapness of our 
products after protection had built up our industries. We prefer the old way. 

The foregoing facts and opinions are presented solely in our own behalf, and not 
in behalf of the American Iron and Steel Association. 



The Cincinnati Corrugating Company, Piqna, Ohio. 

2. Corrugated and other forms of iron and steel, galvanized and 
painted roofing, siding, ceiling, etc. 

3. Cuba and Mexico. 

4. We have endeavored to extend our foreign trade by advertising 
in newspapers, by mailing catalogues and circulars to prospective buy- 
ers, and by personal representation, principally through syndicated 
representatives, and in one case in Cuba, through the undersigued. 
We have had fair success in Mexico, but little, if any, in the South 
American countries, and some success in Cuba, but under the reciproc- 
ity treaty only. 

5. We are not aware of any such discriminations. 

6. We are not aware of any except the abrogation of reciprocity 
treaties. 

7. We do not think that any reduction of customs imposed by for- 
eign nations, which bore equally on all other nations, would be of any 
material advantage to us in our line, except possibly by cheapening 
such goods to them and thus enabling them to buy more. 

8. We have no foreign business now except with Mexico, which is 
about the same now as six years ago. 

9. Selling prices are lower than those of six years ago. 

10. Foreign competitors have advantages over us in lower cost of 
labor, in the cost of their goods, and as generally as we can express it, 
freights are about one-half that they are from this country to foreign 
selling points. 

11. We can always compete with foreign merchants in quality, but 
when sales are dependent on prices only, we can not compete with for- 
eign merchants. The basis on which we get orders from Mexico, for 
example, is almost solely dependent on their being able to get such 
goods as we make from this country more promptly than they can from 
foreign countries. 

12. The general effect of the reciprocity treaties was favorable to the 
export trade of the United States, and to an extent that can not be too 
strongly expressed. The effect of the repeal was immediate, and, so 



RECIPROCITY STATEMENTS. 401 

far as our observation goes, to cause a reduction in volume of such trade 
to equal at least 90 per cent. 

We inclose herewith copy of letter addressed in 1894 to W. C. 
Brown, treasurer of the Isaac Harter Company, Fostoria, Ohio, express- 
ing our views on this point more in detail. 

13. We do most heartily favor the application of the reciprocity 
principle to the tariff legislation, and the enactment of the general law 
authorizing the President to negotiate reciprocity treaties with both 
European and American nations as far as possible. We consider the, 
principle of reciprocity as being the wisest and most effective principle 
ever introduced in the commercial legislation of the United States, and 
the only principle which will enable us eventually to capture our full 
share of the markets of the world. The market of the United States is 
ours, and should be forever preserved so, except in so far as it is made 
to our interest to make concessions, and it is the most shallow idea 
possible to concede our markets without consideration therefor, and the 
principle of reciprocity will protect us in this. 



Piqua, Ohio, October 19, 1894. 

Dear Sir : Your esteemed favor of the 18th is received to-day, and we beg to state 
that before the reciprocity treaty between Spain and the United States went into 
effect, we were never enabled to sell any of our material in Cuba although we, 
made strenuous efforts for years previous. After the reciprocity went into effect, 
we sold 30,600 galvanized tiles, amounting to $8,119.98 in value. 

Toward the latter part of the duration of the reciprocity treaty, however, com- 
petition arose from the Eastern manufacturers, by which they supplied very large 
quantities, amounting to many times the amount that we sold, as they had the 
advantage of cheaper freights to Habana and other Cuban points. 

The principal shijnnents were made from New York, and if you could have some 
one attend to it no doubt you could get from the custom-house there the records of 
the principal shipments during the reciprocity treaty to Cuba and other points. 

When the writer was in Habana about two years ago, he was told that all the flour 
used in Cuba was then coming from the United States, and the same was true of all 
articles of cast and wrought iron and steel, which previously came principally from 
England. One of the most intelligent merchants in Habana informed the writer that 
the imports for any given period, under reciprocity treaty in Cuba, amounted to 
more than the imports from the United States, all South America, Central America, 
and Mexico, some of which countries had no reciprocity treaty with this country. 
Yours truly, 

J. G-. Battelle, Secretary. 

W. C. Brown, Treasurer The Isaac Harter Co., Fostoria, Ohio. 



The Seidel & Hastings Company, Wilmington, Bel. 

2. Charcoal iron plates and other plate iron. 

3. $230,000. 150 to 200. $200,000 to $300,000, according to state of 
business. 

4. Exclusively at home. 
10. About two-thirds. 

13. None. Our work is largely a specialty and on orders for quick 
delivery. 

18. Effect undoubtedly favorable and repeal unfavorable, speaking 
in a genera] way, but neither affects us directly. 

20. Yes. 

H. Eep. 2263 26 



402 RECIPROCITY STATEMENTS. 

JR. D. Wood & Co., Philadelphia, Pa. 

Permit us to say that if it is possible to reestablish reciprocity as 
was the case a few years ago, nothing could be done which would more 
facilitate the expansion of the export trade of our particular branch of 
manufactures. 

As to cost of production in this country, we are almost on the same 
level as the manufacturers abroad, and we only need some such assist- 
ance as reciprocity to attract to this country a very large volume of 
business, and therefore earnestly hope that a movement toward this 
end may take shape. 



MACHINERY 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, I). C, March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses'? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture ? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago ? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land ? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets ? 

14. What advantages do your foreign competitors have over you in the 
cost of manufacture and in transportation charges to foreign markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices % 

403 



404 RECIPROCITY STATEMENTS. 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States cau be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity? (The purpose of this inquiry is to secure as accu- 
rate an estimate as possible of the necessity for new foreign markets to 
the manufacturers of the United States.) 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal ? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity j)rinciple to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives ; but, if so 
desired, any information received will be regarded as confidential. All 
values should be expressed in United States gold, and all quantities in 
our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



REPLIES. 

The Detroit Steel and Spring Company. 

The value of reciprocity arrangements between our Government and 
other nations would be felt indirectly rather more than directly. 

We are one of the largest producers of railroad, engine, and car 
springs. This product is sold largely to railroads to whom we give 
freight business, and the advantage which we have over our competi- 
tors in the trade of our locality lies in the fact that we are able to recip- 
rocate for any preference or favor shown to us. 

We are also producers of material used by the agricultural imple- 
ment makers, who are becoming exporters of considerable magnitude, 
so that any arrangement for the increase of their export business would 
be at once felt by our company. The value of reciprocity can hardly be 
estimated between nations, for its benefit in local trade is so great. 

We are unqualifiedly in favor of reciprocity between our Govern- 
ment and other countries, believing that the benefit derived will be felt 
by every one of our 500 employees as well as the stockholders of our 
company. 



RECIPROCITY STATEMENTS. 405 

William F. Draper, Rouse of .Representatives United States. 

Reciprocity, while in my view most desirable with countries like the 
South American whose products are different from our own, would 
probably be of more value for farm products than for the general man- 
ufacturing products of the country, unless the proposed treaties con- 
tained differential duties against England as compared with this country. 

The fact is that in most manufacturing lines the English can make 
cheaper goods of the same quality than we can, and that of itself wiy 
give them the foreign market, other things being equal. 

William F. Draper. 



George Draper & Sons, Hopedale, Mass, 

Replying to your circular letter of March 4, would say that the firm 
of George Draper & Sons acts as selling agent for the Sawyer Spindle 
Company, Northrop Loom Company, Hopedale Machine Company, and 
Dutcher Temple Company, and manufactures goods on a small scale. 
The Sawyer Spindle Company and Xorthrop Loom Company do not 
manufacture goods, and the questions below answered cover the prod- 
ucts of the Hopedale Machine Company, Dutcher Temple Company, and 
the manufacturing plant of George Draper & Sons. 

2. Cotton machinery, i. e., machinery used in the manufacture of cot- 
ton yarns and cloths. 

3. Amount of capital invested in business, $1,500,000; number of 
persons employed, about 900; value of annual product, $1,700,000. 

4. Our entire market is in the United States. 

5. No sales made. 

6. It would be useless for us to attempt to make foreign sales, since 
the cost of products similar to ours, and only slightly inferior, can be 
produced by English machine shops at much less than our cost of pro- 
duction, and freights and banking facilities are in favor of English 
shops. 

7. On account of the facts stated in question 6, we have never 
attempted to sell goods outside of the United States. 

8. We have no knowledge of the matter. 

9. If any change of tariffs in foreign countries were to be so made as 
to admit English-built machinery on the same terms as ours, it could 
not possibly affect our making sales. If, on the other hand, changes of 
tariff of foreign countries could be made on the lines of reciprocity with 
the United States alone, and such changes would, through differential 
import duties of such .foreign countries, substantially offset the differ- 
ence in cost between English-made machinery and our own, it would, 
we, think, increase our trade. 

10. The output of our establishment six years ago was $1,375,000; 
last year, $1,700,000. Last year, however, we added a new line of 
machinery to our output, of which we have sold about $400,000 worth, 
so that, comparing the sales of the two years, without reference to the 
added line of machinery, we sold $75,000 worth more of goods six years 
ago than last year. 

11. The cost of production is somewhat less than six years ago, the 
decrease being in cost of raw material, principally pig iron. We employ 
more men now per $1,000 of sales than we did six years ago, at some- 
what less wages per man. 



406 EECIPROCITY STATEMENTS. 

12. Present selling prices are somewhat lower than six years ago ; we 
can not make an absolute comparison , as we have materially altered and 
improved and changed our products. 

13. Machinery competing with that built by us is sold in the American 
market, and establishes the price for many lines of cotton machinery 
in the United States, i. e., cotton machinery can be delivered in the mill 
(the common form of delivery) at less cost to the English builder than 
to us, after having paid the duty and freight charges. 

14. Our foreign competitors can produce machinery of given type for 
much less than our costs, and their freight charges to foreign countries 
are lower than ours. 

15. We excel foreign manufacturers in the quality of our goods, but 
our prices laid down at points outside of the United States, on even 
terms, would be much higher, even though we are willing to sell on a 
lower margin of profit. 

16. The total product of the United States in our line of manufacture 
remains substantially stationary. There are, we think, the same number 
of concerns in business in our line now as then; some of these concerns 
have increased their output and others decreased. 

17. Our general estimate is from one-sixth to one-quarter of all cotton 
machinery put into American mills to-day is made in England. The 
present American builders of cotton machinery could easily increase 
their output so as to make what is needed to fill American mills if the 
price of the English machinery was not cheaper. 

18. We believe that the general effect of the reciprocity treaties made 
in 1890 was favorable to the export trade of the United States ; that 
indirectly the effect was favorable to us in that it helped our customers, 
the cotton mills. 

19. We know almost nothing as to the effect upon farm products. 

20. If to the application of the reciprocity principle can be added 
suitable protective laws, so that the United States can make fair recip- 
rocal arrangements, we believe in the principle. 



Gates Iron Works, Chicago. 

2. Manufacturers of rock and ore crushing and general mining 
machinery. 

3. Canada, Mexico, the republics of South and Central America, 
British Isles, France, Belgium, Sweden, several colonies of Australia, 
Tasmania, New Zealand, and all the mining countries of South Africa. 

4. We have made great effort to extend our foreign trade, chiefly by 
resident agents in Canada., Mexico, England, South Africa, and Aus- 
tralia. Our trade in all of these countries is growing, but our largest 
success has been obtained in South Africa, chiefly, of course, in the 
South African Kepublic. 

5. We do not know of any special discrimination in the tariff laws in 
the foreign countries that are any greater obstacles to the manufac- 
turers of the United States than to the manufacturers of other coun- 
tries. The tariff of 30 percent imposed by Canada on mining machinery 
cuts us off from a large market close at home, and we believe that the 
restriction is felt as keenly by the mining interests in Canada as by 
the manufacturers on this side. 

6. We know of no recent changes in the tariff of foreign countries. 



RECIPROCITY STATEMENTS. 407 

7. The removal of the Canadian tariff on our class of machinery 
would largely increase a profitable field. 

8. The volume of our total business, as compared with that of six 
years ago, is nearly three times as great. 

9. The present prices are not more than 60 per cent of those of six 
years ago. 

10. The only advantage our foreign competitors have over us is in 
the cost of certain kinds of iron and steel. This is chiefly, of course, 
the case in England, but on nearly all grades of these products we are 
at present on pretty even terms. 

11. We can successfully compete with all foreign manufacturers in 
both quality and prices except in cases where special grades of steel 
peculiar to foreign countries are used. 

12. In our line of business we did not feel the effect of the reciproc- 
ity treaty made in 1890. 

13. We do not believe in that system of reciprocity which results in 
the benefit of one class of manufacturers without any relation to those 
equally worthy. We believe in reciprocity treaties which are broadly 
general, so that the general effect shall be a free as possible inter- 
change of trade between different countries, especially between the 
United States and Canada and the United States and Mexico. 



The Filer and Stowell Company, Milwaukee, Wis. 

2. Steam engines, pumps, and sawmill machinery. 

3. Five hunched and fifty thousand dollars capital; three hundred 
employees; value of product, $800,000. 

4. Ninety per cent home market, 10 per cent foreign market. 

5. We sell direct. 

6. Yes, by traveling salesmen. 

7. The change in the tariff laws with Cuba and the South American 
republics has indirectly damaged our business considerably. A large 
per cent of our machinery is used in the Southern States. As stated, 
the change in the tariff laws has interfered with exporting lumber from 
the Southern States, and in that way has affected our business. What 
is needed to improve export trade between the United States, Cuba, 
and the South American republics is direct lines of steamers. This 
would be our remedy. A couple of years ago we made a shipment to 
Venezuela by way of Liverpool. Such a triangular route is hardly in 
keeping with American enterprise. 

8. Do not know. 

9. A reduction in Canadian tariffs would benefit our business consid- 
erably. 

10. Forty per cent greater. 

11. Twenty-five per cent less. 

12. Forty per cent less. 

13. None in American markets. 

14. Foreign built sawmill machinery is 75 per cent lighter. There- 
fore they have a proportionate advantage in material and transpor- 
tation. 

15. Builders of the best grade of sawmill machinery in the United 
States could compete with the world in quality and adaptability for 
the purpose it is intended. 



408 RECIPROCITY STATEMENTS. 

16. Increased approximately 25 per cent. 

17. Approximately 60 per cent can be absorbed in the home market. 

18. As far as my experience goes, the effect of the reciprocity treaties 
of 1890 were favorable to American manufacture. 

19. I have no means of knowing its effect upon farm products be- 
yond the increased duties on flour exports. 

20. Yes ; I favor the application of the reciprocity principle to future 
tariff legislation, and recommend the enactment of a general law author- 
izing the President to negotiate such treaties with European and Amer- 
ican nations as far as possible. 



The Ball & Wood Company, New York, 

This company is engaged in building steam engines for manufacturing 
and electrical purposes, and while our dealings with foreign countries 
have been limited, yet we have shipped engines to Belgium, Switzer- 
land, Cuba, Siam, and now have an order on our books for Japan. 

In our experience we do not find a prejudice existing against our 
goods abroad, or that customs duties or other restrictions prevent their 
introduction. We attribute the failure of our people to obtain a larger 
share of foreign trade to an absence of sustained and systematic effort, 
ignorance of how to go about it, and to their greed of profits resulting 
from high prices at home, fostered by an extreme protective tariff. 

Under such a system trade is artificially stimulated at home and 
prices are high. This encourages the establishment of industries, and 
for awhile we are prosperous, then the limit of capacity is reached for 
the country to absorb its manufactured products, a reaction follows, 
and we experience a period of depression, low prices, and failure. It is 
then that the surviving manufacturers appreciate the merits of a for- 
eign trade, and look about them to procure it, but find it is no easy 
matter, and that while they have allowed their trade to follow, like 
force, its line of least resistance, the English, German, and French are 
already in full possession. 

You ask our opinion of the reciprocity principle, and we think it is 
well enough, but believe it is unnecessary, and have sufficient confidence 
in the greater business energy, better machinery, and more intelligent 
labor at the command of American manufacturers to believe that all 
they need is a settled and stable policy of tariff and finance to make 
their way successfully in the markets of the world. If you will give us 
a moderate and fixed tariff, not so extreme in either direction as to 
invite attack from political parties, and if you will give us a sound and 
permanent financial system based on values recognized in commerce 
the world over, the business community can be left alone to care for 
itself and lay plans with confidence for trade both at home and abroad. 
Without these we can only regard the future with misgiving, and can 
only regret having made investments which are subject to the endless 
changes in legislation and the interference of politicians. 

In this letter we have probably gone outside of your inquiries, but 
believing that you wish to put yourselves in touch with the manufac- 
turers direct, we believe you will pardon us. 



RECIPROCITY STATEMENTS. 409 

The Black & Clawson Company, Hamilton, Ohio, 

We are in receipt of your circular letter of March 4, and below you 
will find our reply, which is given in numerical order, ns per your cir- 
cular. We hope yon will find our answers of interest, and we shall be 
glad to have you to, at least in a measure, restore the tariff and reci- 
procity legislation. 

2. Builders of paper-making machinery. 

3. Japan, Australia, Mexico, Canada, France, Scotland, Germany. 

4. Yes. Advertising in trade journals and a few export publications. 

5. We have a heavy duty to pay to get into Canada and Australia; 
and the silver money of Japan and Mexico makes it difficult to get 
orders from there. Reciprocity might help us in the tariff with the 
former countries, but we have no suggestions on the silver problem 
with the latter ones. 

6. None, we believe. 

7. Would help us very considerably in Canada. 

8. About 66% per cent. 

9. Much lower. 

10. Owing to lower wages their goods cost somewhat less, but with 
the high merit of American machines we are able to compete in price. 
Transportation, however, is in their favor. 

11. Quality of American machinery is highly appreciated in most 
foreign countries. 

12. Do not think it had other than an indirect effect on our line of 
manufacture, but this was to our advantage. We look upon their 
repeal as unfavorable to this country. 

13. Yes. We believe it will increase our export trade with all coun- 
tries and in all lines to which it applies. 



JarecM Manufacturing Company, Urie, Pa. 

2. Brass and iron goods and machinery for steam, gas, oil, and water 
purposes, etc. 

3. Capital, $2,000,000; employees, 800. 

4. Mostly at home, small export proportion. 

5. Some to foreign dealers, some through export houses to Europe 
and South America. 

6. Partly by advertisement. 

10. About 25 per cent increase. 

11. Labor about same cost, material lower. 

12. Considerably lower. 

14. None, except lower-priced labor. 

15. Can compete in some of our lines. 

16. Considerably increased. 

17. Present output too large for home consumption, 
20. Yes. 



J. A. Field Manufacturing Company, St. Louis, Mo. 

2. Sugar-cane mills, feed mills, and agricultural implements. 

3. Twenty thousand dollars; 25 to 40 employees; value of product, 
$110,000 annually. 



410 RECIPROCITY STATEMENTS. 

4. Market both home and foreign — about 10 per cent foreign. 

5. Sell both direct to foreign dealers and through commission houses. 

6. We have tried to extend our foreign trade by advertising, with 
reasonable success, mostly in South America, Mexico, India, Europe, 
and Canada. 

7. The trouble we have is the excessive revenue laws of other coun- 
tries. 

9. It would triple our trade if these laws can be repealed or modi- 
fied, especially with Canada and Mexico. 

10. The output of our establishment is 25 per cent less than six years 
ago. 

11. Wages and most raw material now are lower by 10 to 15 per cent 
than six years ago, and selling prices much less still. 

12. They are 25 to 35 per cent less. 

13. Europe; in all the markets we enter. 

14. Cheap labor and cheap transportation; both are in favor of 
Europe, as well as shipping facilities direct. Many times we have to 
go via Europe to get to South America. 

15. We can compete in quality to its fullest extent, but not at all in 
price. 

16. We think it has decreased very much. 

17. Two-thirds now, and the balance, one-third, could be exported as 
it is now, and if running full capacity nearly one-half could be sent 
abroad. 

18. The reciprocity treaty of 1890 was very favorable to foreign trade 
in this country with others where this reciprocity existed. 

19. Do not think we can answer this question more fully than we 
have in the last two questions. 

20. We favor reciprocity with all countries as far as practical, giving 
the President full power to negotiate such treaties. 



Diamond Machine Company, Providence, E. I, 

We are not aware of any particularly beneficial effects derived from 
the reciprocity legislation of 1890 in our business. We believe, how- 
ever, that the effect of the legislation has been good for the country as 
a whole, and trust that it will not be repealed. 

In regard to your second question, we will say that the customs 
duties in most countries in Europe, and especially in France, interfere 
very seriously with the extensions of trade in those countries. We are 
practically shut out from the French market for all of our productions, 
except the very largest and heaviest machines. We are thereby de- 
prived of a portion of the grinding machine business which we would 
like to secure in this country, and the manufacturers there are unable 
to supply themselves with the best line of grinding and polishing 
machinery made in the world. The situation in central South America 
is not so familiar to us, as our trade has not extended to this country 
to any extent, except through commission houses in New York. 

The customs of England are so liberal that we are able to do a very 
large business in that country. 



RECIPROCITY STATEMENTS. 411 

The Standard Machinery Company, Mystic, Conn. 

Capital, $103,000; 60 persons employed; annual product, about 
$120,000; market mostly at home; ship some goods to South America 
through commission houses; are doing more advertising than formerly 
to extend foreign trade. 

Our output is about the same as six years ago, but prices are lower. 
Competition is much greater than then; cost of production a little less; 
wages a little lower, and some kinds of material less. 

Foreign competitors have the advantage over us in the lower pric& 
of labor. If we had a larger foreign outlet for our goods we could 
increase sales materially. The home market is not sufficient to absorb 
all the goods manufactured in our line. 

In "answer to inquiry 20, we would say that we favor reciprocity 
treaties with foreign countries. 

We also favor restriction to foreign pauper immigration. Our large 
manufactories are filling up with cheap pauper labor, caused by the 
immense tide of immigration setting in upon us, and the increase of 
labor-saving machinery whereby cheap foreign labor can be employed 
to the exclusion of our native-born workmen, who go into other lines of 
work rather than be brought down to starvation wages. Increase of 
competition tends to lower the price of labor. 

There are many other things that enter in to hurt trade and reduce 
profits. The reduction of the tariff on woolen goods has almost ruined 
that industry in this country. 



F. J. Kingsbury, Waterbury, Conn. 

Our market is of necessity mainly a domestic market, but anything 
which makes trade healthy and gives the people good wages, so that 
they can buy the comforts and luxuries of life which we manufacture, 
is a benefit to us. 



The Liberty Machine Works, New YorTc. 

1. The name of the company of which I am president is the Liberty 
Machine Works, at 61 and 63 Frankfort street, New York City. 

2. Building by contract of printing and paper- cutting machinery, 
dealing in type, printing inks, and all kinds of printers' materials, 
papers, etc. 

3. All the Latin- American countries, and Europe, China, etc. 

4. We have made direct efforts to extend our trade by our Spanish 
publication, El Amigo del Tipografo, and interesting Latin -American 
merchants in selling our goods with growing success. Our paper is 
more in the nature of a catalogue in sections and interests lastingly 
by articles on pertinent questions in the printing trade. We have sent 
often samples of newspaper, etc., and try to get contracts to supply 
regularly papers of important circulation. 

5. Tn Cuba we can not sell any paper since the cancellation of reci- 
procity treaty. The Spanish-made paper enjoys such advantages over 
the United States made that the United States are virtually out. 

6. The disadvantages now existing arise only from the cancellation 
of the reciprocity treaties; otherwise we are not aware of any changes 
in existing tariffs— printing machinery, types, etc., being mostly on the 
free list. 



412 EECIPROCITY STATEMENTS. 

7. Tlie general adoption of the " free" clause for the printing machin- 
ery, types, and news paper coming from the United States would, 
beyond any doubt, increase our trade immensely. 

8. Our business has steadily grown since we committed ourselves 
exclusively to the export business in 1891, and amounts now to about 
$100,000 per year. 

9. The present net selling prices for printing machinery and types 
are much lower, but this is not owing so much to any foreign competi- 
tion, but to transferring the sharp home competition to the trade in the 
Latin- American countries by the American manufacturers. 

10. The advantages of foreign competitors are principally in the 
freight; for instance, we have at present a hard stand against German 
paper manufacturers in Venezuela. Their paper is somewhat cheaper 
and the freight enough cheaper to make a decided difference in the cost 
of the paper for a large newspaper, and in consequence we may lose 
our contract with El Pregonero, of Caracas, Venezuela. 

11. With regard to foreign competition in printing machinery, types, 
etc., we have to rely on the quality, principally. We can sell even 
some printing machinery and types in Europe. 

12. The reciprocity treaties have been in general favorable, according 
to our experience. Their repeal acted for a while unfavorable, but as 
the quality of the goods was the principal recommendation in our line 
of goods, the demand commenced again after a while. We are sure, 
though, that a steady and larger increase would have followed if the 
treaties had continued. 

13. So far as we can judge from our experience, the reciprocity prin- 
ciple is entirely sound, if the treaties are made to please both parties. 



The Stiliv ell- Bier ce & Smith- Vaile Company, Dayton, Ohio, 

The full name of our company is appended hereto, and our lines of 
business are chiefly the manufacture of turbine water wheels, feed- water 
heaters, steam pumps, oil-mill machinery, ice and refrigerating machin- 
ery, and power-transmitting machinery of various kinds. 

Answering your questions in the order in which they are presented, 
so far as we can, we beg to say we have dealings with Great Britain, 
France, Germany, Eussia, China, Japan, and the various Republics of 
Central and South America, Mexico, Cuba, and Canada. We have 
made considerable effort to secure business in these various foreign 
countries, and have concentrated our efforts for business in Great Britain 
and continental Europe in the hands of an agency in London. In the 
other countries named, we operate either through local agencies or by 
correspondence. Just at present, we have a very large contract with 
parties in Canada. Of course the tariff tax levied on all machinery 
introduced into Canada stands in our way, and no doubt our business 
with that country could be very considerably increased but for this 
fact. At the same time, we are strong believers in the doctrine of pro- 
tection and we are perfectly willing that Canada should apply the 
same doctrine in protection of the interests of her manufacturers and 
workmen. 

The volume of our business as compared with six years ago has con- 
siderably increased (we refer now to the foreign business), but it has not 
met with that increase which we had confidently hoped for and expected. 
Selling prices at present are very much lower than they were six years 
ago. Foreign competitors have an advantage over us, in the fact that 



RECIPROCITY STATEMENTS. 413 

as a general thing their labor is ranch cheaper, and also transportation 
charges as a general thing are very much less from English and Euro- 
pean i^orts than from our ports. Our foreign business with Mexico and 
South America, for instance, could be largely increased and facilitated 
greatly by regular lines of steamships running from our ports to the 
principal ports of those countries. The reciprocity feature of the tariff 
Jaw enacted in 1890 we looked upon with great favor. It was not in force 
a sufficient length of time to fairly test its merits, but it was in force a 
sufficient length, of time to clearly establish the fact that under its oper v 
ations a very large increase in our export business could be made. 

We should be very glad to see that feature of the law reenactcd. We 
want a fair and reasonable tariff that shall produce sufficient income 
to meet the needs of the Government, and levied upon such articles as 
shall afford the largest amount of protection to our own industries and 
our workmen. If such a bill, coupled with reciprocity features, could be 
enacted and allowed to stand for a few years, we confidently believe that 
it would result in a very large increase of our export business and a 
very large development of our manufacturing industries. 



The Wallace Manufacturing Company, Frarikjort, Ind, 

2. Clay- working machinery for manufacturing brick, and drain tile in 
particular. 

3. Capital, $20,000; invested, $40,000; employ 30 persons; annual 
output about $50,000. 

4. The majority of our trade is at home; we export some of our goods, 
particularly to Canada. Eecently shipped a $3,000 plant to Guatemala, 
Central America. 

5. Part of our export trade we receive through exporters and part 
direct. 

6. We have made no direct effort to get foreign trade. 

7. Personally, we know of no particular discrimination, except between 
Canada and the States. The duty on brick machinery going into Can- 
ada is 30 per cent. The result is we are deprived of considerable busi- 
ness from Canada. The duty is making it possible for our machinery 
to be manufactured in Canada, as the inclosed letter will testify. We 
find that the German manufacturers, as well as the English and the 
Canadians, are copying after our machinery as near as possible; and 
with the duty against us, and with the difference in the price of the 
labor, we can not hope to have much trade from these three sections. 
We can only suggest that such material or goods that those countries 
produce that we can not produce should be admitted into the United 
States free, on condition that goods that are not produced by those 
countries and produced by the manufacturers of the United States be 
admitted free. 

8. We know of no changes in the tariff between those countries and 
the United States taking place in the last five or six years. 

9. If the duty was removed from brick machinery g'oing into Canada, 
\»e could increase our business fully 25 per cent. 

10. The output of our factory in 1893 and 1894 was 50 per cent of 
what it was in 1891 and 1892. Our output in 1895 was 10 per cent less 
than it was in 1892. Our output this year will fall off 75 per cent of 
what it was last year if it continues as it has been since the 1st of 
January. 

11. The cost of production of our machinery is about the same as it 



41-4 RECIPROCITY STATEMENTS. 

was six years ago. The trade has demanded a high grade of machin- 
ery. The cost of labor is slightly less — nothing to speak of as com- 
pared with the better grade or the extra cost incurred in making higher 
grade of machinery. The cost of material is in some respects lower 
and in other respects it is higher. The same can be said of railroad 
transportation. 

12. Our selling prices are fully 20 per cent lower than they were six 
years ago. 

13. We meet with considerable competition in the States with Cana- 
dian. English, and German makes of brick machinery. 

14. Our foreign competitors — Germany and England in particular, we 
speak of them for the reason that they are the largest manufacturers of 
clay-working machinery of any country outside of the United States — 
have a very considerable advantage over us in the matter of wages 
paid for labor. We hud on close observation that our direct labor 
account equals a little more than half of our general expense of pro- 
ducing our machinery: and with Germany paying at least 50 per cent 
less and England 25 per cent less, and with strong competition at home, 
it drives our margins on machinery to the lowest notch, and we still 
can not meet their prices east of the Alleghany Mountains. The 
advantage that we have so far is. that our machinery in this country is 
superior to the machinery made in England and Germany, but they 
are copying after us very rapidly, and we look for very strong competi- 
tion with them for the eastern trade as far west as Pittsburg if there 
is not sufficient duty placed upon brick machinery to protect us against 
such competition. 

16. We have no data to tell what the exact total product is in the 
Tinted States in our line. We do know, however, that the facilities of 
the United States are such that we can produce a surplus over home 
consumption. The manufacturers of brick machinery have increased 
their plants from time to time each year until last year, since when 
they have decreased somewhat for the want of business. 

17. The United States could consume 75 per cent of the output of our 
present facilities for manufacturing brick machinery. Therefore we 
have facilities at the present time for making a surplus of fully 25 per 
cent, and have plenty of ground and money to very materially increase 
our outpout. 

15. Zvfost undoubtedly the reciprocity treaties of 1S90 would be favor- 
able to the export trade of the United States and the repeal of same 
we consider one of the greatest blunders of the age. Our stringent 
times in the manufacturing lines of 1S93. 1891. 1S95. and 1896 are due 
largely to the repeal of the reciprocity treaties, for the reason that pre- 
vious to 1889 the manufacturing interests of the United States were 
working on an misapplied market. In a great many lines they had 
struck the zenith long before that time, and were not only able to supply 
home consumption, but to make a surplus. The reciprocity treaties of 
1890 opened a market for this surplus, a larger quantity being consumed 
at home by giving employment to the surplus labor, thereby making 
business in the United States much better for those who were depend- 
ing upon the United States for the consumption of their product. 
When the United States lost its export trade through the repeal of the 
reciprocity treaties, we lost not only our export trade, but the trade 
in the United States from the lack of the ability of the laboring classes 
to purchase a great many articles that they could have purchased if 
they had been given steady employment, as they were during the short 
time when reciprocity treaties were in force. 



RECIPROCITY STATEMENTS. 415 

19. To our mind the repeal of the reciprocity treaties has acte4 as a 
" bear " on all farm products, for the reason of the inability of the labor- 
ing classes to consume as much as they did when the reciprocity treaties 
were in force, thereby giving us a surplus of farm products that other- 
wise would have been consumed. 

20. Most undoubtedly we are in favor of applying the reciprocity 
principles to future tariff legislation, and the President should be 
authorized to negotiate reciprocity treaties with all countries, especially 
South American and Central American countries, as well as Mexico, 
admitting many of the articles that they manufacture or produce and 
that we do not manufacture or produce into the United States on con- 
dition that they admit our manufactured product free. 

We sincerely hope that the Ways and Means Committee will formu- 
late a tariff bill that will close our ports of entry against every article 
that we can produce in this country for our own consumption, even if 
it becomes necessary to have a more direct tax than duty on imports 
in order to maintain our Government. If the tariff laws are such that 
they will shut off competition from foreign countries so as to manufac- 
ture our home product and keep our labor employed, and with a reci- 
procity treaty that will take care of our surplus, we can well afford to 
pay our taxes direct in order to maintain the Government. 

We trust that this will be satisfactory, and that you will succeed in 
formulating a tariff law that will not only bring in sufficient revenue 
to carry on the expenses of the Government, but that it will protect 
each manufacturer in his particular line of goods that can be produced 
for our home consumption, and with a reciprocity treaty that will open 
up the markets of the world. We are confident that if you will do so, 
the United States Government can redeem bonds instead of issuing 
more. 



J>. G. Loomis & Sons, brielcmaTcers, builders, and railroad contractors. 

Sherbrooke, Quebec, March 13, 1896, 
Dear Sirs : Tours of the 10th to hand, and in answer say that your 
machinery, with duty and freight, came too high; so we have arranged 
to manufacture what we require here, with the exception of a Potts 
disuit. 

All our orders for machinery are filled, and we expect to be in foil 
working order within a month. Our market requires a soft-mud brick, 
and it would be too expensive and difficult a job to introduce a stiff- 
mud brick now, for they are prejudiced against auger-machine brick. 
Yours, 

D. G. Loomis & Sons. 

The Wallace Manufacturing Company, 

Franlcfort, Ind. 



The Link Belt Machinery Company, Chicago. 

The present rates of customs interfere with our Canadian trade, and 
reciproca\ arrangements with Canada would be of advantage in our 
business 



416 RECIPROCITY STATEMENTS. 

Nordylte & Marmon Company, Indianapolis. 

2. Flour-mil], rice-mill, and other cereal-mill machinery. 

3. Five hundred thousand dollars ; 250 persons now; 450 during good 
times. 

4. Both; 90 per cent home; 10 per cent abroad. 

5. Both. 

6. Yes. Lately, by associating ourselves with an export association, 
with headquarters in New York City. Formerly by advertising. 

7. We are, especially in Canada and South American countries. Sug- 
gest the remedy : Reciprocity. 

8. We know of none. 

9. Materially. 

10. About 75 per cent. 

11. Somewhat less. 

12. No comparison whatever. Starvation prices at present. 

13. We can not nor do not pretend to compete with foreign countries. 
Generally a matter of preference, when we secure an order. 

14. Can not say. 

15. See reply to 13. 

16. Decreased. 

17. Manufacture on orders only. Can not answer. 

18. Favorable. Yery noticeable. The repeal great drawback. 

19. Can not say. 

30. We certainly do, most heartily. 



The Springfield Machine Tool Company, Springfield, Ohio. 

2. We make a line of machine tools embracing engine lathes, shapers, 
power presses, brass-finishing lathes, etc. ; also are gray iron founders. 

3. We have a fair trade in England, and made once a small shipment 
to Germany. 

4. Our trade in England came through personal solicitation, and is 
kept up by advertising. Have never made any direct effort to extend 
our trade elsewhere except by answering letters from inquirers, but 
which always failed to bring the trade. 

5. We believe that the high tariff laws of Germany, France, and 
other machinery- using countries prevent our tools from being more 
extensively sold. We mean that our line of what is known as "machine 
tools," being recognized as much superior in design and workmanship, 
would sell the world over provided we could deliver them within a rea- 
sonable price. Machine tools are used only in the older manufacturing 
centers, like France, England, and Germany. South America, Mexico, 
Africa, and India do not use enough modern machine tools to make it 
an object to obtain their trade. The latter named use agricultural and 
mining machinery, which we do not manufacture. 

6. Are not aware of any changes in the tariffs of foreign countries 
using our line. 

7. Germany, perhaps, would be the largest market in the world for 
American machine tools if we could get them there within a reasonable 
price. The Germans like our tools, but claim they can't afford to import 
them owing to a tariff of about 35 per cent, we believe. 

8. The volume of our business compared with six years ago is 50 per 
cent greater, but we are yet a young concern, and this was expected. 



RECIPROCITY STATEMENTS. 417 

9. The selling price of to-day on general machine tools is at least 25 
per cent less than six years ago. 

10. We are told, and are under the impression, that foreign com- 
petitors have the advantage of cheaper transportation charges. For 
instance, it costs more to deliver from Springfield to New York than 
from New York to London. 

11. We can easily compete with foreign machine-tool builders both 
in quality and price, and the superiority of design of American machine 
tools is undisputed, particularly on the engine lathe, which is the king" 
of all tools and is used five to one in any machine shop. 

12. We have no experience to report as to the general reciprocity 
treaties of 1890 and their repeal. 

13. We are decidedly in favor, however, of any reciprocity law that 
will put us into closer trade relationship with any foreign country. 

Finally, we would mention and suggest that in order to more rapidly 
acquire foreign trade that our consular service be given more and 
closer attention, by putting in business men (not worn-out ward politi- 
cians) who are alive to what is being manufactured here, who will 
interest themselves to find out what machiney is used in the locality 
where they are stationed, post themselves where they obtain it, and then 
acquire and report the information to the manufacturers of this country 
through some medium that Congress should provide. 

We should in some manner imitate the German Government, which, 
we are informed, has a bureau of some kind that visits the manufac- 
turers, finds out the line, kind, and style of goods manufactured, with 
prices, etc., and then assists in some manner to introduce these goods 
in the foreign trade, and then reports back to the manufacturer any 
suggestions, changes, etc., best adapted for that particular country — 
in short, takes an interest in them, and helps to extend trade wherever 
possible. We also recommend better banking facilities with foreign 
countries, under our own control, and that, with subsidized carrying 
vessels, we ought to largely increase our foreign trade. Lastly, the 
manufactures of this country should have a representative in the 
President's Cabinet, same as agriculture. 



B. W. Payne & Sons, Mmira, N. Y. 

2. Lines of trade? Manufacture of steam engines and boilers. 

3. With what foreign countries do you deal? We have dealt largely 
with Cuba; some with Mexico, Venezuela, and Brazil. Have also had, 
from time to time, some trade with China and the British Indies. Our 
export trade heretofore has been principally with Cuba. 

4. Have you made any effort to extend your foreign trade? Only 
through the exporters in New York. 

5. Are you aware of any discriminations, etc. ? The import duties in 
Cuba prevent us from reaching that market. We can not say that we 
are injuriously affected with the other countries. 

6. What changes have recently occurred in the tariff, etc.? The 
abrogation of the reciprocity treaties have shut us out from the Cuban 
market. 

7. How far would the removal or reduction of custom duties, etc. ? 
We are unable to answer this question, as we do not know just what 
the import duties in Cuba now are. After the reciprocity treaties were 

H. Eep. 2263 27 



418 RECIPROCITY STATEMENTS. 

abrogated trade from the island with us ceased at once, and just what 
duties were imposed we are unable to say. 

8. What is the volume of your business compared with that of six 
years ago? The total volume of our business is about one-third of 
what it was six years ago. Our export trade has fallen off almost 
entirely. 

9* How do present prices compare with those of six years ago ? There 
is a reduction of from 25 to 50 per cent, depending upon the character 
of the goods. 

10. What advantages do your foreign competitors have over you, etc. °l 
Aside from all discriminating duties, their advantages are principally 
in the means of transportation and banking facilities. 

11. To what extent can you compete with foreign merchants, etc. ? 
With proper banking and transportation facilities and with equal 
duties we can compete with foreign manufacturers in any of the South 
American markets. The superiority of American machinery over goods 
of a similar class made in Europe is such as to give American goods 
the preference, all other things being equal. 

12. What is the general effect of the reciprocity treaties made in 1890 — 
favorable or unfavorable, etc.? Highly favorable in trade with Cuba. 
It made little difference with the other South American countries. In 
1890, 1891, and 1892 we had an excellent export trade to the island, 
which was increasing every year. In 1893 it dropped off entirely, and 
we have sold nothing there since. 

13. Do you favor the application of reciprocity principles to future 
tariff legislation, etc. ? Most decidedly, yes. 



The Laidlaiv-Dnnn- Gordon Company, Cincinnati, 

2. Pumping and hydraulic machinery. 

3. Cuba, Mexico, Central and all South American countries, South 
Africa, Great Britlan, and Australia. 

4. We have made direct effort to extend our foreign trade by send- 
ing representatives through Cuba, Mexico, Central and South America, 
and Great Britian. 

9. About 30 per cent less. 

10. Low price of labor in cost of manufacturing and subsidized steam- 
ship lines, which carry their product to foreign markets at much less 
rates than we can from this country. 

12. The general effect of the reciprocity treaty of 1890 was very 
favorable to the export trade of the United States. For instance, our 
trade with Cuba fell off almost entirely on the withdrawal of the reci- 
procity treaty with that country. The same may be said of our South 
American trade, but not to such an extent. 

13. We do favor the application of the reciprocity principle for future 
legislation and the enactment of a general law authorizing the Presi- 
dent to negotiate reciprocity treaties with both European and Ameri- 
can nations. The adoption of the policy of 1890 regarding reciprocity 
treaties was the wisest statesmanship and certainly did much to bring 
us into better and closer relations with all the people of Central and 
South America. The raw products of those countries that do not come 
into competition with the raw products of our own country should cer- 
tainly be admitted free of duty for the benefit of our people, and if 
these privileges were accorded to our southern neighbors, they would 



RECIPROCITY STATEMENTS. 419 

certainly receive from us many of our products, either free from duty 
altogether, or at duties lower than they would receive the same class of 
products from other nations. 

We trust that such general laws may be adopted for the suffering 
manufacturers of this country. 



Crane Company, late Crane Bros. Manufacturing Company, Chicago, lit 

2. We are manufacturers of steam fitters 7 supplies, passenger and 
freight elevators. 
a. The capital of our business is $4,000,000. 

4. Probably 95 to 97 J per cent of our business is in this country, 
exporting from 2J to 5 per cent. 

5. We sell in but very few cases direct for export ; it is done mainly 
through commission houses. 

6. We have made but very little effort to sell foreign trade. What 
we have done is by means of an agent making a trip to the Sandwich 
Islands, Japan, China, and Australia. 

7. We know of no discriminating obstacle in the way of laws, but 
do meet something in the way of custom, which in some cases makes 
it difficult to procure trade, in consequence of old customs and asso- 
ciations. 

8. I know of no changes having recently occurred in tariffs of foreign 
countries relating especially to our line of manufacture. 

9. The tariff law adopted some time ago in Canada has been quite a 
detriment to supplying that market with our line of goods, as previous 
to the adoption of that law Canada was supplied in our line of goods 
largely from the United States. Their present tariff now prevents ship- 
ment of many goods which formerly went there. 

10. I have not the figures with me showing the comparative output 
of our factory now with that of six years ago, but it is safe to say it is 
25 to 33 per cent increase. 

11. Would say the same thing in regard to this. I have not the figures 
with me showing the difference in cost of our goods now as compared 
with six years ago, but estimate it to be 20 to 25 per cent cheaper. 

12. Selling price corresponds with the cost. 

13. We meet with no foreign competition in the United States, as you 
readily understand that would be inconsistent with exporting the same 
goods, and it is a little difficult to say what competition we meet with 
in foreign countries, but it is safe to say that it is mainly English com- 
petition. 

14. I do not think foreigners have any advantage in the cost of 
manufacturing; on our line of goods the main advantage they have is 
in having had the foreign markets so many years and having shipping 
connections of the best kind. 

We find in the little effort we have made that it is difficult to do 
business except at points that we reach to better advantage than they 
do, and have better shipping facilities, such as the Sandwich Islands, 
Japan, and the West Indies. 

15. This has been practically answered before, but would add that 
we have no difficulty in competing with foreign manufacturers as far as 
quality and price are concerned. 

16. The total production in our line of goods in the United States 
has been very materially increased in the last six years. 



420 RECIPROCITY STATEMENTS. 

17. I can only give an estimate in answering this question, and would 
say the surplus facilities for manufacturing our line of goods on an 
average is not more than 5 or 10 per cent above the demands of the 
market. 

18. In regard to this question would say that we have not paid close 
enough attention to. the question of export to form any opinion worthy 
of presenting, as the amount we export is so trifling compared with the 
home market that we do not regard it as of any great importance. 

19. I do not understand the question. 

20. I might say the same to this question, and would add that, as I 
have said in answer to some other questions, the foreign business, as 
far as we have looked into it, has not attracted much attention from us, 
and have no opinion to give. 

In reply to the last one or two clauses of the circular letter, would say 
that the exporting of manufactured goods, as you readily understand, 
is so far in advance of the idea of requiring protective tariff that it seems 
inconsistent to talk about it. 

A great many people are going on the theory that we can not take 
care of the home market if it is not liberally protected. Consequently, 
it is the height of absurdity to talk about or to especially encourage the 
export of manufactures, although there are lines of manufactures that 
we can and have exported for many years, which facts are familiar to 
your committee, or, if not, you are in a position to get such information. 

My reference to manufacturing is not intended to include the manufac- 
ture of farm products. 

In regard to the general principles, would say that we had better bring 
about a condition of things that will enable manufacturers generally to 
take care of the home market. When that is reasonably well done there 
will be time enough to entertain the idea of seeking foreign markets on 
an extensive scale. 

The statistics of exports of American manufactured goods ought to be 
an important factor in settling many of the tariff questions. 



Atlas Engine Worlcs, Indianapolis, Ind. 

The reciprocity treaties are the only means by which the low rental 
values of money that enter into the established credit systems of the 
South American States can be overcome to any extent in the interest 
of the American manufacturer. The English competitors of this house 
offer long-time credits on open account and still longer for bills, receiv- 
able at very low rates of interest, the credits being in truth more 
acceptable to the British manufacturer than cash. Just so far as the 
tariff of the South American States is reduced in our favor by treaty 
are we proportionally able to sell heavy machinery. The rental value 
of money always has been and always will be the basis of commerce. 
jSTo one alive now will ever see the day when we will be on an equality 
with the English in the matter of amassed wealth or low rental values of 
money. Whenever we become aggressive in those States and England 
feels our effort, we will be defeated unless preference is given to us in the 
way of reciprocity, as heretofore so willingly entered into. The repeal 
of the reciprocity feature of our laws was a step backward many years. 

The above opinion is based upon the difficulties this company has 
encountered in the effort to establish trade in the South American 
Eepublics. 



RECIPROCITY STATEMENTS. 421 

Tlie Brass and Iron Worlcs Company, Fostoria, Ohio. 

Manufacturers of brass goods for waterworks, pipe- threading machin- 
ery, printers' machinery, etc. ; will answer your several questions only 
in a general way. 

Our export trade has been limited to Italy, and as our manufactures 
are largely patented specialties foreign competition has little or no effect. 

We have advertised in several Spanish-American papers and mailed 
many circulars to Mexico and Spanish- American countries, with unrfc- 
inunerative results, owing mainly to a lack of facilities and knowledge 
of the exact requirements of nations and people entirely different from 
our own. 

A defect in the arrangement of our Government departments that 
could be so easily remedied by changing the qualifications of our repre- 
sentatives abroad from political and social attainments to practical 
expert commercial knowledge ; these representatives to be sent abroad 
by a Government department of manufactures and commerce. 

The volume of our business varies little from that of six years ago. 
It should have multiplied. Prices average about 25 per cent less. 

We can easily excel in quality, as compared with foreign manufac- 
tures, but can not compete in price, because the American mechanic will 
not be content with the pay of the mechanic of other countries. He has 
been trained and educated in the liberal school of the republican admin- 
istration until he is 50 years old. It is a serious crime to dismiss this 
school now and compel him to saw wood or plant potatoes. 

The American mechanic and the products of American labor, in what- 
soever form, must have suitable protection by a system of tariff legisla- 
tion and reciprocity adjustment that will give us the first, if not exclu- 
sive, right to our own market, and then secure by fair reciprocity a for- 
eign market for our surplus in exchange for such articles as we can not, 
or as are not profitable to, produce in this country. With a fixed system 
of tariff and reciprocity on fair and honorable principles, this country 
will very soon develop, through the inventive genius and superior intel- 
ligence of its mechanics, so as to produce not only the best but the 
cheapest goods in the world, outside of those who live on rats and rice. 
The steady and remunerative employment of labor means prosperity to 
the farmer and every industrial occupation. 

In this connection, and to our mind almost inseparable from it, is the 
supply and demand for the two money metals — gold and silver. The 
world appears to have a scarcity of the former and a surplus of the lat- 
ter. The United States of America is the greatest commercial nation on 
earth, hence it requires more money per capita than any nation in the 
world. Hence, again, the amount of our real money must be increased. 
We must keep our gold and add to our store by the means that will 
most effectually accomplish it — tariff and reciprocity. We have enough 
silver, perhaps not any too much. Protect and increase the value of 
what we have by absolutely prohibiting importations of silver in bul- 
lion, coin, or other form. Eestore free coinage of American silver on 
present basis. The actual and enduring wealth of this country will 
thereby be enhanced very largely. The profits will fall to our own peo- 
ple ; to everybody in this country. Nobody in this country will suffer 
from this course, and the great, struggling masses will be made happy, 
for they will have employment at remunerative wages, and the tramp 
will lose his occupation. 

A protective tariff', fair reciprocity, and free coinage of only American 
silver. 



422 RECIPROCITY STATEMENTS. 

ThePelton Water Wheel Company, San Francisco, Cal.,andN~ew York City. 

2. Water wheels, water pipe, and accessories connected with hydraulic- 
power plants. 

3. Amount of capital, $300,000. Number of persons employed aver- 
age 75 to 100. Value of annual product, about $300,000. 

4. Both at home and abroad. About one-third of entire trade goes 
to foreign countries. 

5. Almost entirely through commission houses. 

6. Have made a considerable effort in this direction, partly through 
advertising in export trade journals and partly through established 
agencies. Eesults very gratifying. Foreign orders come mostly from 
Mexico, Central and South America, Japan, and Canada. 

7. Do not know of any, except in Canada, where an import duty of 
30 per cent is exacted. 

8. Do not know of any. 

9. Would aid materially. 

10. Fully double. 

11. Somewhat less. 

12. Considerably reduced. 

13. More or less from all the countries to which our products are sent. 

14. A great advantage in both cost of manufacture and transporta- 
tion, especially the latter. 

15. Our products are much superior, but we can not compete in price. 

16. Materially increased, owing to greater interest in utilization of 
water powers. 

17. Can not answer. 

18. Most favorable, especially in Spanish- American trade. 

19. The effect of repeal very detrimental. 

20. Favor it most decidedly. 



The Link-Belt Engineering Company, JSficetotcn, Philadelphia, Pa. 

2. Machinery for the elevating and conveying of materials and the 
transmission of power. 

3. Capital, $200,000. Number of persons employed, about 140. Value 
of annual product, $500,000. 

4. An average of several years would show about seven-eighths of 
our sales to be in the home market and the remaining one-eighth to be 
exported. 

5. Principally to commission houses. 

6. Our direct efforts to reach foreign trade have been confined to the 
Spanish- American countries. They have been exerted through adver- 
tising, careful distribution of illustrated catalogues printed in Spanish, 
and the annual sending of a representative to the island of Cuba. 
These efforts have been markedly successful during the continuance of 
the reciprocity treaty made in 1890. We did a much larger business 
with the island of Cuba in 1891 than in the preceding year, and made 
another large advance in 1892, falling off nearly to the 1890 figures 
in the years 1893 and 1894, with which year comparisons cease to be 
of value, owing to the conditions which existed in the island during the 
whole of 1895. In other of the Spanish-American countries our deal- 
ings have been very limited, owing, we believe, in a large measure, to 
the lack of transportation facilities. With proper reciprocal treaties, 



RECIPROCITY STATEMENTS. 423 

such as were proposed and in part put in force during the last Admin- 
istration, we and other United States manufacturers should do a large 
business with all of the Spanish- American nations, if direct and reg- 
ular lines of communication were opened. In this connection, the facts 
cited in the consular report on our trade with Brazil are eloquent. We 
will not give them in full, but note, as an illustration, that England buys 
annually from Brazil about $5,000,000, and sells to Brazil $47,000,000, 
while the United States, buying from $58,000,000 to $60,000,000 worth 
of her raw material annually, sells her about $8,000,000 of our products. 
There are five steamship lines making regular voyages and a large num- 
ber of tramp steamers making irregular voyages from the Brazilian 
ports to the United States, bringing to us coffee, sugar, rubber, and 
hides, while there is only one line of steamers, and that sending a ship 
twice a month, from the United States to Brazil. 

Without attempting detailed answers to the remainder of the num- 
bered questions, we express our earnest conviction that reciprocity trea- 
ties with nations relatively classed as nonmanufacturing are of immense 
value and importance to this country. Our own trade responded quickly 
when those of 1890 were put in force, only to shrink again with their 
annulment ; but believing our home market to be the most valuable, we 
would deprecate any system of treaties which would conflict with that 
proper measure of protection which we believe it the first duty of Con- 
gress to enact for the protection of United States manufacturers. It is 
not apparent to us that the principle of reciprocity can be applied to 
advantage to our relations with rival manufacturing nations, and with 
our present knowledge we should favor the limitation of reciprocity 
treaties to American nations. 



A. W. Colwell, mechanical engineer, designer and constructor of sugar 
machinery, New York City. 

2. Sugar machinery, principally for plantation use, boilers, anything 
that may be required on a sugar plantation. 

3. All Spanish America; a little in Sandwich Islands. 

4. Yes; visiting Mexico and Central America. Living in Cuba three 
to six months during crop season. 

Besident agents in different countries. Advertising, circulars in 
Spanish. Illustrated books. The English seem to absorb all that is 
good in the Sandwich Islands, very little going there from the States. 

European manufacturers send a partner to live in the country and 
marry there in many -instances; so, getting in touch, receive orders 
direct, without the intervention of middle commission men. 

A great deal of the foreign business of the United States is through 
commission men, which makes it very expensive; but it is safer, as they 
pay us before the goods leave the country. They, having branches at 
Spanish-American cities, get business at both ends of the route. 

5. Cuba has at times higher rates against American imports. I can 
not recall this being the case with other countries. I have met German 
agents in Cuba who would contract to deliver a lot of machinery f. o. b. 
a Cuban port, duty paid, at cost and freight. It was believed by those 
interested that the agent had an understanding with the custom-house 
officers. This is quite common. A remedy — control Cuba. 

6. Mexico is considering the repeal of interstate duties. See Con- 



424 RECIPROCITY STATEMENTS. 

sular reports No. 183, for December, 1895, Joseph G-. Donnelly, con- 
sul-general, Nuevo Laredo. 

7. If Spanish America reduces duties on American exports, it throws 
the trade with the United States, especially if we have resident agents, 
sudsidize steamers, and bring the raw products direct instead of hav- 
ing them go to England first, as wool from Argentina reaches us at 3 
cents per pound advance via England. 

American machinery is better liked by Spanish America, but duties, 
commission, and expenses are against us except in specialties. Amer- 
icans are not inclined to give two or three years' credits, generally 
wanting one-third on signing contract, balance when shipping papers 
are presented to commission merchant in New York. 

8. About one-tenth. 

9. Erom 10 per cent to 25 per cent. 

10. Europe produces cheaper. Satisfied with lesser profits. Costs 
less to do the business. Having resident agents taking the produce of 
those countries in trade as pay. English tramp steamers carry very 
cheap. 

11. In some classes of sugar machinery we can make an article that 
is better liked, we can get out a hurried order quicker, and the time of 
transportation being shorter, puts many orders in our shops. 

The Cubans have an affection for Americans which favor us. Should 
Cuba win in the present troubles they will enact laws that will favor 
the States to the detriment of Europe. This will give the United States 
a trade of from $50,000,000 to $100,000,000 per annum. This will be 
favorable to United States shipping. On the other hand, should Spain 
win we will be barred ; every law will be shaped so as to favor those 
nations that took Spanish bonds. 

12. In the most decisive manner, favorable. The repeal was death 
to business. During the life of the treaty with Cuba my trade was 
more than I wanted. I refused orders, so with others in my line. At 
the abrogation of the treaty, nothing came to the United States; 
Europe taking what orders there were, but business had fallen off owing 
to low prices of sugar, 1J to 2 cents per pound instead of 3J or 4 cents. 
The war coming ended all. The repeal affected us the same in all 
Spanish- American countries. 

13. Yes; if it is with countries which furnish material that we can 
not produce. No ; if with Europe who can flood us with manufactured 
goods. 

James G. Blaine was favorably considering the idea of demanding 
that the goods of countries affected by the reciprocity treaty should 
be carried by the ships of those countries, thus barring foreign tramps. 

Eegarding sugar, I would rather see a 2-cent bounty given American 
sugar growers, whether cane, beet, sorghum, or maple. It would stim- 
ulate our machine shops and kindred trades to the extent of $50,000,000 
per annum for ten years to come. 

Agriculture would profit as it would require millions of acres, and 
railroads would be benefited as they would have to handle the raw 
product, the finished sugar, fuel, etc. I had two beet-sugar companies 
organized that would have started to handle 600 tons of beets per day 
each, but both were abandoned when bounty ceased. 

A few days after the arrival of your inquiry, I received a letter from 
a party in the City of Mexico. I send copy entire. It will give you 
some information as to the difficulties of doing business against cheap 
European goods. 



RECIPROCITY STATEMENTS. 425 

Tlie Cincinnati Tool Company, Cincinnati, Ohio, 

Manufacture fine mechanics' tools. 

Paid-in capital, $18,000 ; number of people employed, about 25; value 
of product, about $35,000. 

Our market is nearly entirely home, although we have some trade in] 
Canada and the lower provinces, and ship a few goods to other coun^ 
tries. Probably not one-tenth of our business is export business. We 
sell to foreign dealers, as a rule, through commission houses, as we prefer 
giving them a small commission for spot cash rather than take chances 
of a long-drawn-out account in a foreign country. 

We have made direct efforts to extend our foreign trade in Venezuela 
and Nicaragua through a direct representative with samples. The 
trade has not been so far satisfactory. In Venezuela our goods seem 
to be of too high a grade for the mechanics of that country ; that is, 
the prices for our articles are too high. The freight, duties, and trans- 
portation charges in that country add so greatly to the original cost of 
the goods here, it gives us very little chance of selling. 

In answer to your article No. 7, we will state that in case we have 
reciprocity treaty with Venezuela we think the arrangements could be 
such that the duties on our goods down there would be greatly lowered, 
giving us a chance to sell, where we seem to have very little chance 
now. 

The only suggestion we could make to enlarge our trade with this 
country would be of the nature of "You tickle me and I tickle you" 
plan. In other words, if we were to favor the products of that country 
we would expect them to favor ours in return. 

In answer to your question No. 9, we would state we think the removal 
or reduction of customs duties imposed by foreign nations upon the 
goods we manufacture would be a very great help to us in selling them 
in those countries. For instance, where the duties are 35 per cent, as 
they are in Canada, the mechanic has to pay that much more for the 
goods, and possibly for this reason uses a lower grade of goods, or, in 
the border towns he crosses the boundary and buys the goods in Detroit 
or Port Huron at the American price, puts them in his pocket, and goes 
back without paying duties. 

Our output is hardly as large as it was six years ago. The cost of 
production is not so high. Wages are a little lower. Raw material is 
considerably lower. Not much change in transportation. Selling prices 
are much lower than they were six years ago. 

We meet competition in every foreign country in which we have 
attempted to sell goods — in Australia, south Africa, South America, 
and Central America. 

In answer to your .question No. 14, foreign competition has the 
advantage of cheap labor and direct transportation to foreign ports, 
subsidized lines of steamships running regularly to all parts of the 
world, giving them much better and quicker communication with the 
foreign markets. We have no fear of foreign trade when the question 
is simply one of quality of the goods; on this point the United States 
can beat the world. But when we come to the price of goods in our line, 
where so much of the work is necessarily hand work, we are not so 
well able to compete in the question of price, although we believe that 
our men do a good deal more work in a day than a foreign workman. 
But he is paid probably twice as much. 

In answer to your question No. 16, will state that we do not know. 
Judging from our experience, it has remained about the same. 



426 RECIPROCITY STATEMENTS. 

In answer to No. 17, we ought to do 50 per cent more business for the 
domestic market, and could easily do 50 per cent more for the foreign 
market. In other words, if we were running our shop to the fullest 
capacity, and under the most favorable conditions, we could double our 
present production at very little, if any, extra outlay. 

The general effect of reciprocity treaties was favorable to the export 
trade, and we believe their repeal was a great mistake. 

Question 19 we can not answer, not being farmers. 

We most assuredly favor the application of reciprocity principles to 
future tariff, as we believe the South and Central American nations all 
feel particularly grateful to our country for the manner in which she 
has acted in the Venezuelan question, and in the manner in which we 
hope she will act in the Cuban question. We believe good banking facil- 
ities with American capital in the South and Central American coun- 
tries should be fostered and encouraged; direct steamship lines should 
be subsidized, and, above all, we should have first-class business repre- 
sentatives for consuls in the different trade centers of those countries. 
If our consuls were trained and able business men, as they should be, 
having the business education and knowledge of the country, together 
with its customs, we believe the manufacturers of the United S bates 
would gain greatly by it. One of the greatest drawbacks to our foreign 
relations, we believe, is the constant changing of our consular force. 
If the force were working under civil-service rules, it would be a god- 
send to the country, because in that case we would not have some a Way- 
back from Duck Creek' 7 misrepresenting us in some important business 
center, simply on account of his political pull with the "powers that be." 



AGRICULTURAL IMPLEMENTS, 



CIKOULAB OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, D. C, March 4, 1896. 
Sir: In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of Dills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Ho you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade,* 
and if so, by what means, with what success, and in what countries ? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade* and if so, can you suggest any means by 
which they may be removed ! 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade*? 

10. What is the output of your establishment compared with that of 
six years ago t 

11. How does the present cost of production compare with that of 
six years ago* including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets ? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices ? 

427 



428 RECIPROCITY STATEMENTS. 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years'? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity ? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Representatives; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



EEPLIES. 
A. B. Farquhar Company, YorTc, Pa, 

2. Manufacture of machinery, engines, sawmills, and agricultural 
implements. 

3. Nominal capital, $500,000. Eeally about $600,000, all paid in. 
Average of 500 workmen employed. Yalue of annual product about 
$600,000. 

4. The world is our market. About one-third of our product goes 
abroad, sometimes half. 

5. Both to foreign dealers and through commission houses. 

6. Yes; a good deal by correspondence, by traveling abroad, and by 
sending agents. We have been successful. 

7. Only such restrictions as we might expect when it is borne in mind 
that we are continually placing impediments in the way of trade in 
the form of unnecessary and onerous duties. Obviously the way to 
encourage foreign trade is to remove those duties so far as possible. 
In other words, to have a tariff solely for revenue and reform our navi- 
gation laws, making ships free and encouraging commerce instead of 
discouraging as we do at present. 



RECIPROCITY STATEMENTS. 429 

8. Through the efforts of our ministers arid consuls duties upon our 
line of manufactures have been reduced. Would especially compliment 
Hon. W. I. Buchanan, minister to Argentina, for his efforts in this line. 

9. It would, of course, immensely increase our trade. 

10. The output of our establishment now is about the same in value 
as it was six years ago. It was more in 1893, however, than in 1890. 
It has suffered from the silver- craze panic. 

11. Labor is about the same as six years ago, but the cost of raw 
material is much. less. Transportation is somewhat less but not in, 
proportion. 

12. Six years ago we received for goods on an average 25 per cent 
more than we do at present, although the cost of manufacture has not 
declined over 10 per cent. Hence it is very difficult to make a profit. 

13. We are not specially troubled with foreign competition. The 
greatest competition is in America. We need no protection whatever. 
The freer you make trade the better it will be for the American manu- 
facturer. Could we abolish duties altogether and obtain our raw 
material free, encouraging other nations to remove duties upon our 
goods by reciprocity or otherwise, America would be the great manu- 
facturing center of the world. Our shops would be all busy and work- 
men all employed at good wages. 

14. Foreign competitors have an advantage of from 25 to 50 per cent 
in wages ; about 10 to 15 per cent now in metals ; fully 25 per cent in 
transportation; yet we have no difficulty in running them out of any 
market since American workmen, with improved machinery, will accom- 
plish fully double as much per day as the workmen of foreign countries. 

15. Can compete with foreign manufacturers to any extent although 
hampered by our insane shipping and tariff laws. 

16. The total product has increased during the past six years. 

17. About nineteen-twentieths of the manufactures in our line are 
absorbed by the domestic market. If all the factories in our line 
were running full-handed we could manufacture about double the 
amount needed for domestic purposes, and, of course, if we all ran full- 
handed we could manufacture cheaper. In other words, if we could 
export half of our product, as we would do under favorable laws, we ' 
could manufacture much cheaper, since shop expenses would be less. 
Our domestic customers could therefore buy cheaper, and as workmen 
would be all employed they would get better wages. 

18. The general effect of the reciprocity treaties were unquestionably 
favorable, and the effect of their repeal unfavorable. I was not enthusi- 
astic for reciprocity, fearing that it would interfere with tariff reform, 
but must admit that Mr. Blaine was correct in his conclusions. 

19. Farm products were not so much affected as manufactures, 
although the farm pjartook of the general prosperity, and lower prices 
of sugar, coffee, etc., of course benefited it. 

20. Yes, I would now favor the general application of reciprocity 
abroad. It would not be so effective as the abrogation of duties, but 
would prove a vast benefit if we can not make trade free. We should 
unquestionably have reciprocity treaties with Canada, Cuba, Mexico, 
and the South American Eepublics. 

In conclusion, would say the writer has been manufacturing agricul- 
tural implements and machinery for forty years, and his foreign trade 
is extensive in these articles, probably the most so of any implement 
manufacturer in America. 



430 RECIPROCITY STATEMENTS. 

Chattanooga Ploiv Company, Chattanooga, Tenn. 

2. Plows, plow repairs, cane mills, evaporators, etc. 

3. About 300. 

4. Four-fifths domestic, one-fifth foreign. 

5. Nearly entirely direct. 

6. By visiting in person. 

7. Eeciprocity. 

8. None that we are aware of, 

9. Do not know. 

10. Has increased. 

11. Something cheaper. 

12. Something less. 

13. In Latin America, English, German, and French. 

14. Cheaper labor and lower transportation. 

15. Can excel in quality and make quite as low prices, other things 
being equal. 

16. Probably increased. 

17. Can only estimate, but it would be largely in excess. 

18. Favorable ; the repeal was a misfortune. 
20. Yes. 

The writer was in South and Central America at the time of the 
repeal of our reciprocity measures, and the general tone of foreign buy- 
ers was adverse to it, and some were bitter in their objections. We 
have no doubt it was a great injury to our foreign trade. Our own 
foreign business was seriously impaired. We believe the reason that 
more has not been said about the matter is that the trade of this country, 
especially in South and Central America, is so limited. Eeciprocity, if 
made stable, would increase iuterest, and interest would increase trade. 
The manufacturers need encouragement to spend money in seeking 
these new fields, and reciprocity is one way to do it. There are also 
other ways in which the Government should give aid. 



Moline Plow Company, Moline, III. 

2. Agricultural implements. 

3. Two million dollars; employ 800 men; annual product, $2,000,000. 

4. Market is mostly at home, but we sell some abroad; possibly 5 to 
10 per cent of our output goes abroad. 

5. We sell through commission houses, and also direct to foreign 
dealers. 

6. We have made no direct effort to get foreign trade except by 
advertisement and correspondence, sending no representatives abroad, 
except into Manitoba. 

7. We are aware of the fact that there is a protective tariff in force 
in our trade relations with Canada, particularly as far as the trade of 
Manitoba is concerned, there being a 25 per cent ad valorem duty on 
agricultural implements. We believe a reciprocal effort could be made 
with the Canadian Government to remove the tariff on implements, as 
the large mass of the farming community in Canada are eagerly seek- 
ing to reduce or remove entirely the tariff on implements. 

8. The only tariff changes which have occurred that we know of 
which affected our trade, was the reduction of 10 per cent on the duties 
between the United States and Canada; formerly the tariff was 35 per 
centj now 25» 



RECIPROCITY STATEMENTS. 431 

9. The reduction of this 10 per cent ad valorem duty has had a tend- 
ency to stimulate the trade with this country, and if it were removed 
American manufacturers would get almost the entire trade of Canada, 
and particularly Manitoba, on agricultural implements. 

10. We have increased about 25 per cent. 

11. The cost of production has decreased about 15 per cent; trans-, 
portation very little, if any. 

12. Selling prices have been reduced 20 per cent. 

13. We meet the competition of England, Canada, and Germany 
chiefly in agricultural implements. > 

14. Foreign competitors have a great advantage over us in the prices 
paid for labor. How transportation charges compare we do not know. 

15. The quality of American-made implements is recognized the 
world over as being superior to anything on earth, and brings better 
rjrices; but foreigners, when they get samples of American goods, can 
imitate them so closely that eventually there will be only a sentimental 
difference upon which to claim a higher price. 

16. The total product in our line of goods has increased considerably 
during the past few years. 

17. We think from 80 to 85 per cent of the manufactures of the United 
States can be absorbed in the domestic market. Were the factories in 
this country to be run to their capacity, they could manufacture prob- 
ably double the amount of goods they are now making; that is, if they 
had trade enough to run full the year round. At least, such we believe 
to be true of the factories here in Moline, which are the largest of the 
kind in the world. 

18. The effect of the reciprocity treaties and the repeal was not 
noticeable in our line of business. 

19. We believe that the price of farm products was increased by the 
formation of the reciprocity treaties and was decreased by the repeal 
of them. 

20. We heartily favor the application of the reciprocity principle and 
the enactment of a general law authorizing the President to negotiate 
reciprocity treaties with both European and American nations as soon 
as possible. 



Tlie Robinson Chilled Ploiv Company, Canandaigtia, N. Y, 

2. Plows. 

3. Twenty-five thousand dollars; 15 persons; $12,000. 

4. At home. 

9. Could not say; probably would help it. 

10. Doubled. 

11. Twenty per cent less. 

12. Twenty-five per cent less. 

17. In our opinion, not more than one-half of the possible output 
could be absorbed in the United States. 
20. Yes. 



The Johnston Harvester Company, Batavia, N". Y. 

2. Manufacturers of harvesting machines and agricultural imple- 
ments. 

3. All the nations of Europe, Asiatic Russia and Turkey, Xorth and 
South Africa, and the Argentine Republic. 



432 RECIPROCITY STATEMENTS. 

4. We are constantly making direct efforts to extend onr foreign trade. 
Our usual method is to ship samples of our machines into the new 
country and have them practically worked in the harvest fields by com- 
petent experts. Usually an order follows. East Colony, South Africa, 
and the Argentine Eepublic are the sections where a good trade has 
been most recently established. 

5. No; except extremely high duties in France. 

6. The new tariff of the French Eepublic, which went into effect in 
1892, very greatly increased the duties on our goods. 

7. The only foreign country where our trade is appreciably affected 
by the tariff is France, and while, by persistent and judicious efforts 
our trade there is increasing satisfactorily, we have no doubt our sales 
there would be much greater with a low tariff. Imitations of our 
machines are being manufactured on a large scale in France, which is 
only profitable when having the advantage afforded by the present 
high protective tariff. 

8. More than double. 

9. Eeduced somewhat. 

10. We know of none. 

11. In our line American-made machines are ahead of all other 
nations, and usually bring somewhat better prices. 

12. Our impression is that it was favorable, and we regret the repeal 
of the treaties. 

13. Yes. 



Marion Manufacturing Company, Marion, Ohio, 

Building engines and thrashers. 

Have at present no foreign trade and can not give your committee 
any information on the questions you submit. 

Eeciprocal relations should undoubtedly be maintained, but in order 
to use everybody alike it would approach so nearly to free trade that it 
would be impossible to adopt it as a national measure, although it ought 
to be done. 



Stoddard Manufacturing Company, Dayton, Ohio. 

We have had an extensive foreign trade in our line for the past 
twenty years, and have for many years been the largest exporters from 
this country in our line of agricultural implements. Prior to 1894 our 
foreign trade would run from 3,000 to 4,000 machines. Since then it 
has fallen off about one-third. Our foreign trade is largest in Europe, 
the bulk of it being in Germany, England, Eussia, and Austria. We 
also have considerable trade in South America and Australia. We have 
a branch office and general agency located at Brussels, Belgium, that 
has charge of our European trade. 

In answer to your question 5, would state that we have written to 
our Brussels office to furnish us such late information and facts as 
would probably be of interest to your committee at this time. In the 
meantime we take the liberty of attaching herewith copies of letters 
we received some time ago, and we beg leave to call your particular 
attention to that part of Mr. Sillcox's letter referring to the exorbitant 
United States consul fees, etc. Here, in our opinion, is an opportunity 



RECIPROCITY STATEMENTS. 433 

for the United States Government to aid its citizens, who are seeking 
foreign trade, in a way and manner that does not involve the political 
questions now agitating Congress and the people. In many of the Euro- 
pean Governments, especially France, Germany, and Russia, the high 
tariffs on farm machinery and the discriminations against the United 
States have of late years seriously affected and curtailed our foreign 
trade, and we have not only this to contend with, but are robbed by 
the foreign manufacturer; for example, one of the leading farm imple- 
ments made by us and protected in this country by United States 
patents, and with which for many years we have had a large export' 
trade, is manufactured in Germany by seven different concerns, an exact 
duplicate of ours, and three of these pirates have the gall not only to 
duplicate our machine, but to use a facsimile of our name and address 
on their copy of our machine. 

The result of this increase of tariff duties, discriminating against the 
United States, and the unfair competition and imitation of the foreign 
manufacturer, has resulted in our being driven to a reduction of, say, 20 
per cent in our prices in the foreign markets as compared with six years 
ago. 

Give the American manufacturer of agricultural implements an equal 
chance in the world's market and he "will sweep the field." He asks 
no favors. He wants no protection. Reciprocity will not affect his 
business directly in any appreciable degree, but indirectly he will be 
benefited by it, and therefore we favor such legislation by Congress. 



[Letter 1.] 

Brussels, May 29, 1894. 
Stoddard Manufacturing Company, Dayton, Ohio. 

Dear Sirs: I have learned through the newspapers that the manufacturers in 
America have awakened to the fact that something must he done to improve and 
protect foreign trade. We are nearly shut out in France, and other countries are 
making arrangements to do the same if we are not going to have commercial treaties. 
Count Alberto de Guintana, who has just been elected senator in Spain, writes me 
that he is going to try to obtain a reciprocity treaty between Spain and the United 
States for agricultural machines. France also stands in readiness to do the same 
thing, and we will assist you as much as we can on this side to bring this about. 
You can readily understand that there is no country over here to make you great 
competition; possibly Germany may do so for some machines, but for years to 
come no country on the continent of Europe will be able to manufacture or sell 
agricultural machines or tools in the United States. 

Therefore all the advantages will be on our side, and it will make a much better 
feeling with all the manufacturers and dealers on the continent of Europe; I wish 
you would agitate this question and try to bring Congress to a realization of the 
situation. Any facts or statistics you may want I will furnish you from Europe, 
and any questions or information you or your colleagues may desire to have, put for- 
ward to me, and I will be able through my connections to attend and reply promptly 
to all your inquiries. 

Another question comes up, and this is of great importance to us; that is, in regard 
to all notary fees that we are obliged to pay to United States consuls. No other 
country charges such fees as the United States does for certifying to the signature 
of an American citizen abroad. I wanted to return some goods the other day and 
the notary fees amounted to more than the whole freight; in fact, I had to pay $10 
for it. In England, Germany, or any other large country, the fees would never have 
been over 50 cents. During the Russo-Gernian tariff war we had to make out 
tickets for origin of goods that were lying in Antwerp, and if the Russian minister 
here had insisted on my signature being certified to by the United States consul it 
would have cost us $400 or $500 this last year, but the mayor of Brussels kindly 
vised my signature, which cost 10 cents, and the Russian minister received the 
same as if the consul had visc'd it, and saving $2.50 for every signature. 

I would like also to call your attention to another fact. If we have any diffi- 
culties as commercial men and should go to the legation or consulate for advice, we 

H. Eep. 2263 28 



434 RECIPROCITY STATEMENTS. 

seldom get it, and if they do give it we are taxed for it; and in fact, to sum up the 
whdle matter as a commercial firm, we only seek to avoid coming in contact with 
the United States authorities abroad, owing to the fact that we receive very little 
protection or attention, and have to pay for it so exorbitantly. It seems to me that 
the United States Government could be brought to understand and adopt a system 
similar to the one used by England and other nations— of having a moderate and 
reasonable charge for all notary and other work. The United States should give 
attention and protection to their citizens abroad by ir-ing stamps furnished by the 
Government for any notary act or other work the consulate is called upon to do. 
These stamps are furnished by the Government the same as the postage stamps, and 
must be applied to each document and the consul's seal put over it. We are also 
obliged to pay for the passports, and every time they are vised by the consul or 
United States minister we have to pay $1, while other countries never charge over 
25 cents, and even some of the larger countries never charge anything for visaing 
passports. 

As the United States are seeking foreign trade and sending out their people to 
solicit the same, all these items and expenses will become more and more burdensome 
to the manufacturer. Competition becomes keener, as items of expense like the 
above will be looked after more carefully than heretofore. 

I should like to see the day come when every citizen of the United States will be 
protected as thoroughly as the Englishmen are. It is time now that the manufac- 
turers of the United States looked into these matters carefully. 

Always ready to give you further information, and trusting there may be some 
good come out of it, I am 

Yours, faithfully, Geo. W. Sillcox. 



[Letter 2.] 

August 31, 1894. 
Stobdard Manufacturing Company, Dayton, Ohio. 

Gentlemen : I hand you inclosed a letter from Mr. Alberte de Guintana, senator in 
the courts at Madrid, and formerly governor of the isle of Cuba, in the relation of 
bringing about a commercial treaty between the United States and Spain. 

I would like you to work strongly with the idea of arranging through Congress, 
so that we can have at least quite as good a chance as Germany and Great Britain, 
on the continent of Europe, as I have already informed you that France charges 5 
francs more a 100 kilos to America than Germany and Great Britain. 
Yours, faithfully, 

Geo. W. Sillcox. 



[Letter 3.J 

August 25, 1894. 
Geo. W. Sillcox, Brussels: 

I give you herewith extracts from a letter that I have received from our minister 
of foreign affairs in reference to arranging a commercial treaty with the United States 
of America and Spain whereby we may be able to get your American agricultural 
machinery, tools, etc., into Spain without paying duties so heavily imposed on us at 
present. 

You have done well in replying that our main object in making new treaties with the 
United States of America is to have the duties reduced there on cork and wine from 
Spain in exchange for admitting into Spain agricultural machines, tools, and imple- 
ments made in the United States of America. Besides this we must ask the free 
importation of all new agricultural products, such as rice, pease, etc., if we allow 
their agricultural products to come to Spain. We must ask for two different trea- 
ties, one for Spaiu and the other for the island of Cuba and Puerto Rico. 
Always your ©bedient servant, 

Alberte de Guintana, 

Gorroella de, Montgri, Spain. 



John Moore's Son Company, makers of agricultural machinery, Raritan, 

N~. J. 

The above will give you full name and line of manufactures of this 
company. 

Capital, $100,000; average employees about 75, and yearly product 
about $100,000, nearly equally divided between export and domestic. 



RECIPROCITY STATEMENTS. 435 

We sell abroad both direct and through commission, but even in the 
trade coming through commission merchants we contract with the 
buyers direct to a large extent. Thus the commission houses become 
shipping and banking intermediaries only. We obtain our trade by 
visiting it. 

We are aware of no discriminations against our line of goods affect- 
ing in the slightest our chances for business abroad. 

8. Changes constantly occur in South American tariffs, but affect all 
shippers alike in our line of goods. 

9. As a rule, the tariff in South American countries on farm imple-' 
ments of the simpler classes is light, and the entire removal would pro- 
dine little result. In Argentina only are there any quantity of plows 
and kindred tools made, and even there mainly in the far interior. Even 
there the entire removal of the duty would probably not affect materi- 
ally the demand, though, as Argentina now seems able to produce wheat 
for less at seaboard than this country, any reduction in their items of 
producing cost would hardly seem advantageous to this country. 

10. About twice. 

11. Much less. 

12. Much less. 

13. From English and German makers j in all the markets ; we reach 
Africa and South America. 

14. They have the advantage of steady and fairly uniform cost of 
materials. With them iron and steel costs are as steady as lumber 
costs are with us. We have been lower than them on iron and steel 
costs (in the fall and winter, 1894-95), but our market fluctuates widely. 
This is disastrous to competitive business on staple products made 
entirely of metal. Where wood is the main component part, the advan- 
tage, as a rule, is with us. They have decided advantage in banking 
facilities, exchange, mail time, etc. Their freight rates (from seaboard) 
are much less; time in transit, as a rule, less; freighting opportunities 
more, and insurance less. 

15. Given an even range of costs for materials and the cost of labor 
as of the past two years' average, we can compete in both quality and 
price. 

16. Largely increased. 

17. The home market is the largest individual in the world, but with 
present facilities, worked steadily the year through, existing factories 
could probably produce twice the quantity of our line of goods now 
made and consumed in the United States. In other words, the manu- 
facturers of this country could, without increasing their facilities, but 
simply by running full the year round, suppty all the goods now sup- 
plied by English and German makers and exporters of agricultural 
implements. 

18. Did not affect it to the slightest in our line. Comparing trade 
during reciprocity of those countries availing of it and those not avail- 
ing of it, there was no difference as between the two classes. Trade 
conditions regulated the demand from each class alike. 

19. We do not know. 

Our replies to 17 and 18 are based on actual experience — travel in 
Europe and South America — and a study of the factory conditions in 
the producing and trade conditions in the purchasing countries. Few 
or none of the South American liepublics are without their debts (pub- 
lic) ; all have their expenses, and their interest and expenses are mainly, 
and must be mainly, covered by customs receipts. 

20. No; because we do not believe reciprocity would be operative. 



436 RECIPROCITY STATEMENTS. 

The expenses must be paid and from the custom-house. They might 
reduce or take off the tariff in appearance, but it would be there never- 
theless, in port charges, landing charges, or in some roundabout way. 
"One must live," and nations as well as individuals must have some- 
thing to live on. The native in South America does not want to think 
he is paying the taxes any more than the average American, so they 
load the apparent tax on the merchant, especially on the large import- 
ing houses. A large proportion of such are English or German. So 
the present arrangement is doubly satisfactory — the masses do not see 
they are paying the tax and they also think the hated foreigner is pay- 
ing it for them. No Government which attempted to give honest force 
to general reciprocity could exist, since by as much as reciprocity 
increased the business with the reciprocating nation, by so much would 
the customs suffer, and while the results might be beneficial, still the 
benefit would accrue indirectly and the taxes would have to be direct. 
The South American mind would be no quicker to recognize the true 
and correct balance than the North American mind. 



The Buclier & Gibbs Plow Co., Canton, Ohio. 

2. Plows and agricultural implements. 

4. We sell goods in foreign countries — Europe, Africa, South America, 
Australia, Cuba (before the war), Jamaica, and Mexico. 

5. We make direct efforts to conduct this business by having estab- 
lished an office in New York City, and by establishing agencies in the 
various countries. 

8. We commenced this business within six or eight years, and is not 
very extensive. 

10. We understand our foreign customers have the advantage, be- 
cause they can ship their goods in vessels which sail directly from 
England, France, and Germany, especially to Australia, South America, 
and Mexico. The United States should establish, protect, and main- 
tain a line of vessels plying between these States and South America, 
and Mexico especially. Another item of great importance, as we under- 
stand it, would be the establishment of an international banking system 
between these States and those of the South American continent. 

11. Abstract of duties imposed by the system in vogue between the 
several countries. Believe that our prices compare favorably with those 
of foreign manufacturers, and in quality exceed to a great extent. 

12. The reciprocity treaties of 1890 caused a very largely increased 
inquiry for goods in our line, and since the repeal of said law this 
interest has decreased considerably. 

13. We therefore would be in favor of the reestablishment of reci- 
procity principles in future tariff" legislation, and the enactment of a law 
authorizing the President to negotiate reciprocity treaties with the 
European and American nations so far as possible. We also believe in 
protective-tariff principles, with sufficient force and power to collect 
revenue for the general expenses of the Government. 



Keystone Manufacturing Company, Sterling, III. 

2. We are engaged in the manufacture of farm machinery. 

3. The foreign countries with which we do business are the Argen- 
tine Bepublic, South America, Canada, and some portions of Europe. 



RECIPROCITY STATEMENTS. 437 

4. We have made some effort to extend our foreign trade, and with 
considerable success. 

5. We do not find any restrictions to hinder us, particularly in foreign 
countries, in the extension of our trade, with the exception of Canada. 

6. The Canadian tariff on farm machinery is exclusive, almost pro- 
hibitory. 

7. I think if we could get reciprocity with Canada on farm machinery 
it would be of great benefit to Canada and to ourselves, and think this 
could be brought about by some effort from Congress. t 

8. The volume of our business, as compared with that of six years 
ago, is larger, nearly double, what it was then, but the selling prices 
are lower now than they were then and the profits are not so good. 
(This answers query 9.) 

10. We do not have any trouble about foreign competitors in our line. 

11. We have no trouble in competing with foreign merchants in the 
sale of our goods, either in quality or prices. 

12. We think that the reciprocity treaties made in 1890 were favor- 
able toward extending our trade in foreign countries, and that this 
feature should be again incorporated by our Government. 

13. We are heartily in favor of the reciprocity principle to future 
tariff legislation and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties between us and other 
nations. There is no reason why we should not be able to compete 
with any nation in the world on farm machinery. While labor is lower 
in some foreign countries than it is here, yet they do not have the 
ingenuity and the facilities for manufacturing the goods as we do. 
Most all of the foreign lines of machinery are heavy and very bungly, 
and do not combine the American ingenuity and neatness in their 
manufacture of farm machinery as that manufactured in this country. 



DRUGS, MEDICINES, CHEMICALS, 



CIECULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, D. (7., March 4, 1896. 
Sift: In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by which 
they may be removed? 

8. What changes have recently occurred in the tariffs of foreign coun- 
tries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal aid 
in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago ? 

11. How does the present cost of production compare with that of 
six years ago; including > wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

438 



RECIPROCITY STATEMENTS. 439 

10. Has the total product of the United States in your line of manu- 
facture increased or decreased during the List six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing: to 
their full capacity % (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) / 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff' legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



REPLIES. 

Harrison Bros. & Co., Or ays Ferry, Philadelphia, Pa. 

2. White lead, colors, paints, and chemicals. 

3. About $3,000,0005 about 450; about $2,500,000. 

4. Principally at home, owing to causes and limitations hereinafter 
explained, which virtually bar us out from foreign markets. 

o. Generally through commission houses. 

6. We have made direct effort by advertising and the distribution of 
sample cards and circulars bearing upon our goods, and by employing 
representatives of our own, and also employing commission agents. 
Our success lias been very small, and has not, by any means, compen- 
sated for the outlay expended; mainly in the South American countries. 

7. We have found that we have to contend against a class of cheap 
goods, made principally in England and Germany by lefw-priced labor. 
It would be necessary to degrade our own labor in order to meet this 
competition. Then again, owing to the low value of money in foreign 
countries, they offer terms of credit much more lengthy than we can 
consistently offer. One of the principal difficulties in our obtaining 
foreign trade is the want of facilities for direct steam shipment to the 
principal places where th^ commerce of the various countries is cen- 



440 RECIPROCITY STATEMENTS. 

tered. The only way to remove this would be by the Government of 
the United States extending to its merchants the same aid which the 
Governments of Great Britain and other countries extend to their mer- 
chants in the encouragement of the commercial marine, by the means 
of postal or other subsidies. We believe that foreign nations are dis- 
criminating against the United States, and protecting their home indus- 
tries by means of tariffs, which are largely prohibitory, and meant to 
be so. We believe that the only means of bringing foreign countries 
to admit our products on a suitable basis would be either by retaliation 
on our part, which we do not recommend, or by means of reciprocal 
treaties, which we do recommend. 

8. We are not in position at present to enter into details, but believe 
that the whole tendency on the part of foreign countries has been to 
increase rather than to diminish their prohibitive scale of duties. 

9. Were our products admitted upon any reasonable basis to foreign 
countries our business could be largely increased, because, in the first 
place, the drawback law of the United States on raw material puts us 
virtually on a par, so far as such material is concerned, with other 
nations; then, again, we have advantages in the way of mechanical, 
appliances and mechanical skill, which, other things being on a level, 
would enable us to successfully meet the nations of Europe upon their 
own ground. The increased business being thus brought to our fac- 
tories would enable us to give employment to a larger number of people, 
and in that way the advantage would be of wide distribution. 

10. It has remained about stationary instead of following its natural 
growth or increase, owing to our field of operations receiving no encour- 
agement, such as would take place in the event of a foreign outlet 
existing for our goods, and the building up of manufactuers in our line 
West and South, where we used to have a large demand. 

11. The cost of production has had a downward tendency, arising 
from various causes. We have been able to hold wages up* to about 
their previous figure, being compensated by slight gains in other direc- 
tions, including reduced cost of raw material and the lowering of 
transportation rates. 

12. We meet such competition in all markets, especially our own. 
The market of the United States is made by many foreign manufacturers 
the means of disposing of their surplus stock, thus enabling them to 
keep prices up in their home markets, while they flood this country with 
their excesses. We know of one case in which all the foreign manu- 
facturers are banded together in a pool with the understanding among 
themselves that they shall adhere to certain prices at home, while the 
remainder of their production is consigned to an agent in this country, 
who sells at such price as he can obtain, and any loss thus incurred 
through the sales of such agent is divided up in certain proportions 
among the manufacturers. This has kept down the particular article 
in which these manufacturers deal to such an extent as to make its 
production in this country now unprofitable, if not almost impossible. 
Then, again, the present tariff of the United States is so adjusted as to 
give the foreigner undue advantage by the abuse of ad valorem rates. 
The American* manufacturer is left virtually helpless — tied hand and 
foot — so far as entry goes into foreign markets, while every facility 
seems to be given and the gates opened wide to the entry of the foreign 
manufacturer here. 

14. They have the advantage, if advantage it can be called, of cheap 
labor. They have the advantage of the protecting arm of their govern- 
ments, who see to it as far as possible that their commerce is unfettered 



RECIPROCITY STATEMENTS. 441 

and afforded every possibility for expansion. As for transportation 
advantages, they Lave tliem in the shape of lines of steamships run- 
ning to every part of the world and enabled so to run by means of 
Government aid, extended in one manner or another. 

16. We can outdistance them all in point of quality, and can out- 
distance them also in the way of price upon any equal field, if we were 
enabled by running to full capacity and having markets for our surplus 
to lower the cost of production. 

16. It has increased presumably to the extent of increased lioirte 
production owing to the growth of our country and its population. 

17. The present output can be absorbed, and is absorbed by the 
domestic market, because the limits of that market being known the 
output is limited accordingly. Were we to work to our full capacity 
we could produce a surplus for export, and not only would our surplus 
be available for such purpose, but we could increase our capacity to any 
extent that new markets gave a field for. At present we are limited or 
curtailed, but if we had the opportunity for expansion we would quickly 
respond to such opportunity. 

18. The general effect was undoubtedly favorable, and their repeal 
undoubtedly unfavorable. 

19. Without professing any direct knowledge upon the subject of 
farm products in particular it seems obvious to us that manufactures 
being curtailed, and employment hence curtailed, the home condition 
of the farmer must have naturally been impaired accordingly, and it 
would seem to be obvious that the reverse conditions would hold good 
in the event of manufacturing here being expanded and the earning 
power of labor thus increased. It would also appear that were the 
price of farm products upheld at home it would tend to a corresponding 
upholding of such farm products as are exported. 

20. We most certainly do, and for the reasons heretofore briefly 
sketched in tin's paper, but we would be perfectly content if we were at 
least allowed to hold our own market by the aid of reasonable protec- 
tion through the enactment of an equitable tariff based upon specific 
duties. 



Gilman Bros., Boston, 

So far as a general policy is concerned we are under the impression 
that reciprocity with other countries — particularly the South Ameri- 
can — would prove advantageous to the business interests of the United 
States. 



J. 0. Aycr Company, Lowell^ Mass. 

2. Manufacturers of proprietary medicines and perfumery; printers 
and publishers. 

3. Amount of capital, $300,000; number of persons employed, 225; 
value of annual product, $1,250,000. 

4. Market both at home and abroad. Home market 75 per cent, for- 
eign market 25 per cent; but the foreign market increasing. 

5. The greater part of our export trade is done directly with foreign 
dealers, but some part through American commission houses. 

6. We have been engaged for many years in efforts to extend our 
foreign trade by means of travelers, distribution of our own printed 



442 RECIPROCITY STATEMENTS. 

matter, and by advertising through the newspapers originating in the 
foreign countries with which we trade — these being in all the four 
quarters of the globe. 

7. The chief obstacles to the larger development of our trade in for- 
eign countries is found in high tariffs. We know of no better way of 
removing or reducing such hostile tariffs than by means of reciprocity 
treaties. 

8. Few Zealand last year advanced her tariff on our goods from 25 
per cent ad valorem to 40 per cent, which, we apprehend, will reduce 
our trade there. The tendency of late years, especially in the Latin- 
American countries, has been toward higher tariffs. In Brazil a new 
tariff went into effect in January of this year, which increases enor- 
mously the duties on our goods, besides many other American manu- 
factures. Owing to the ambiguous phrasing of the new tariff our resi- 
dent agents at Bio are not yet able to advise us of the exact rates of 
increase, but we are afraid that we must either relinquish the Brazilian 
market or manufacture entirely at Eio. If we have to do this, so much 
less employment and wages will be forthcoming here for American labor. 

9. The removal of customs duties by foreign nations would in a very 
short time double our exports. Beduction of duties would tend to pro- 
mote larger trade in proportion to the lessening of the burden imposed 
by the high duties. 

10. Our domestic output shows no increase to-day over that of six 
years ago, but our exports to foreign countries show an increase of more 
than 25 per cent. 

11. The present cost of production is about the same as six years 
ago, including wages; transportation rates by sea and land are slightly 
less. 

12. Our selling prices to-day are the same as those of six years ago. 

13. We meet with very sharp competition in markets abroad, chiefly 
from European manufacturers, but also in many countries from the 
native manufacturers and dealers. 

11. Our competitors abroad in many markets have advantages in the 
lower cost of European labor and lower cost of materials. Transporta- 
tion cost has of late years been reduced. 

15. In quality our standard is the highest. As regards prices, we 
come into competition with a large army of foreign products of like 
character to our own, but put upon the cheapest basis. 

16. The total product of the United States in such goods as ours has 
largely increased during the last six years. 

17. It is not possible to estimate accurately what proportion of the 
total present and possible output in the United States can be absorbed 
by the domestic market, but our observation leads us to believe that 
were it not for the outlet given by exportation to foreign countries the 
competition for the United States market would be disastrously felt by 
manufacturers. The surplus for export is limited only by the export 
demand; that is, as the demand increases facilities for supplying same 
expand in proportion. The foreign demand is largely affected by the 
high selling prices in foreign markets of American goods, these high 
prices being largely caused by the high duties which have been added 
to the buying cost. If cost to the foreign consumer could be reduced the 
demand would be increased. 

18. We believe that the general effect of the reciprocity treaties made 
in 1890 was favorable to the export trade of the United States with 
the countries concerned. Our particular goods beuefited only from the 
treaties negotiated with Cuba, Puerto Bico, British Guiana, and the 



RECIPROCITY STATEMENTS. 443 

British West Indies. With, these last-named countries we have not as 
yet perceived any detriment from the abandoning of the treaties, but 
with Cuba there has been a very large falling off in trade. This is 
probably caused by the unfortunate political condition of the country 
this past year or so, which makes a comparison worthless. 

20. We strongly favor the application of the reciprocity principle to 
the Latin- American nations and to the British colonies, especially in 
these latter, with Canada, Australia, New Zealand, and South Africa. 
The duties levied by the British colonies are not excessively high, 
excepting in the cases of Canada and New Zealand. The benefit to be 
derived from reduction of duties in these colonies would be found in 
reduced cost to the public, permitting of larger consumption. We have 
most cause of complaint against Brazil and the Spanish-American 
Bepublics in general, whose tariffs are excessive in the extreme. Reci- 
procity treaties afford the most effective way of relief from these bur- 
dens. American proprietary medicines and perfumery come into 
sharper competition abroad with foreign products than do any other 
single class of American manufactures. There are no articles of Amer- 
ican manufacture which are more widely distributed the world over or 
that are " pushed" with more intelligence and business enterprise, and 
there are no articles of American manufacture that would respond 
more quickly to the encouragement and relief of lessened taxation in 
foreign custom-houses. 



J. J. Allen's Sons, PhiladelpMa, Pa. 

On the item of phosphorus the reciprocity treaty made a difference 
of 2£ per cent in favor of this country over Europe for Cuba, and this 
difference in the rate of duty, together with the feeling which it appar- 
ently created in favor of our country, enabled the American manufac- 
turers to supply nearly all of the phosphorus used in Cuba, which they 
were not able to do before the reciprocity act went into effect. 

A reciprocity agreement with the same difference as above would 
undoubtedly very materially assist in enabling the American manu- 
facturers to supply all the countries of South America, as they seem 
favorable to buying of us, and are ordering in small sample lots, and 
they say they would buy more if the tariff rates were not against us. 



Pronta Gura Company, Meriden, Conn, 

As our business was only started in 1893, and is necessarily small, 
we can not say much concerning reciprocity, especially as on account of 
the financial condition of our country we had to proceed very cautiously 
and could not push our foreign trade. We will, however, endeavor to 
answer some of your questions to the best of our ability. 

1. Pronta Cura Company, Meriden, Conn. 

2. Ointments. 

5. Sell direct to foreign dealers. 

6. Have made direct efforts to get access to the market in Cuba by 
writing directly to dealers. Result: Representation there. 

9. Reduction in customs duties would greatly help us. 
20. Yes. 



444 EECIPROCITY STATEMENTS. 

Andreic Jergens & Co., Cincinnati, Ohio. 

2. Manufacturers of toilet soaps. 

3. Australia, Mexico, Cuba, and Canada. 

4. Have made several arrangements costing us several thousand 
dollars for South American trade, but find foreign soaps in all the mar- 
kets of South America well introduced ; but think it possible to get our 
share by being placed on an even footing with favorable freight rates. 

5. No. 

6. Are not aware of change except Cuba. 

7. Manufacturers in our line are able to cope when placed on an even 
basis with those of foreign inake, providing we can get better shipping 
facilities. 

8. Volume of business compared with six years ago shows an increase 
of 200 per cent. 

9. Prices compared show a decline of 20 to 35 per cent. 

10. The advantages of regular lines of vessels and steamers making 
regular trips to all important points. Also advantage of cheap labor. 

11. On an even basis. 

12. Brought us increased trade, especially with Cuba, but upon pas- 
sage of Wilson bill every order was canceled, and at present high duties 
are unable to sell or compete with foreign soaps. All orders were can- 
celed, and have not received a single order since from Cuba. 

We have only one suggestion to make in addition to a return of 
reciprocity treaties, and that is more encouragement to subsidies of 
shipping lines of steamers. 



Jerome Marble & Co., Boston, Mass. 

We are in receipt of your circular letter of March 4, 1896, asking 
certain information and our views and suggestions in regard to reci- 
procity and commercial treaties. We can give you very little detailed 
information, as we are merchants and not manufacturers. We are 
very glad indeed, however, to give you what little information there is 
within our knowledge on the subjects referred to. Our capital is from 
$300,000 to $500,000. Our business is almost wholly the handling of 
domestic goods and the importation of heavy chemicals. The only 
product we have exported in any quantity is cornstarch, which we 
have sent only to the English market. This starch we have sold to 
foreign dealers direct. We have made no effort to send cornstarch to 
any other market than Great Britain, and we know of no obstacles in 
the laws or customs regulations of any foreign country that would 
restrict or prevent our shipment of starch to other countries, but have 
made no effort to ship starch to other countries, as we have not found 
a demand for the commodity in any other country than Great Britain. 
We have not, however, fully investigated the possibility of advanta- 
geous shipment of starch to other countries than Great Britain. In 
the shipment of starch to Great Britain we have found a decided dis- 
position on the part of the customs to avail themselves of the slightest 
possible deviation from the technical regulations of the customs in 
regard to the marking of goods, etc., to impose fines and penalties, 
although it was evident that the failure to comply with the regulations 
in regard to the matter was the result of lack of knowledge and acci- 
dent or mistake. In other words, a little disposition on the part of the 



RECIPROCITY STATEMENTS. 445 

customs to discourage imports into Great Britain of foreign goods. 
The price of starch to-day, and the cost of its production, is much less 
than several years ago, owing, however, principally to the low cost of 
the raw material at this time. Ocean freight rates vary very much 
from time to time ; just now they are very low from the port of Boston 
to Great Britain. 

We very strongly favor the application of the reciprocity principle 
to future tariff legislation, and the enactment of a general law author- 
izing the President to negotiate reciprocity treaties with both European 
and American nations, as far as possible. We are also very strongly 
in favor of legislation that will very materially extend our foreign 
trade, even to the extent of subsidizing, if necessary, steamship lines. 
We believe the United States should do, as far as possible, its own 
passenger and freight carrying business. 



Longman & Martinez, New YorJc. 

Our business is manufacturing paints and varnishes. 

Trade with Cuba, Puerto Rico, South America, and Mexico. 

Have made direct effort to extend our foreign business during the 
past thirty years. 

The volume of our business in comparison with that of spring of 1893 
and before is over one- quarter to one- third less. 

Our selling price to-day, in comparison, is a less price. 

In paints our foreign competitors have an advantage over us , due, we 
believe, to cheaper labor and to better advantages which they possess 
in the way of transportation. 

Our competition with foreign merchants is therefore difficult, but if 
we are content with none or a very small profit, we obtain a share of 
business. 

The effect of the reciprocity treaty made in 1890 was favorable to our 
export trade; the repeal diminished our business. 

We favor the application of the reciprocity principle to future tariff 
legislation, and the enactment of such a law as you mention provided 
the reciprocity principle is extended only to products of other countries 
which can not be grown or manufactured in this country. 



Bender & Alldred, Pittsburg, Pa. 

2. Litharge and red lead. 

3. Fifty thousand dollars; twenty; $142,000. 

4. At home. 

5. Do not sell. 

G. Yes; by remitting tariff on foreign pig lead; Canada. 

10. We are new and can not make comparison, as have been running 
eight years; first years very small. 

11. Possibly higher; raw material lower. 

12. Kearly 1 cent per pound lower. 

13. In our home market, English, and German. 

14. Advantage of cheaper labor. 
17. About one-half ; the other half. 

19. In our line lower. 

20. We do. 



446 RECIPROCITY STATEMENTS. 

Heath & Milligan Manufacturing Company, Chicago, III. 

2. Paint and color makers. 

3. We do not deal direct with any foreign countries to any extent. 

4. We have made one effort only to extend onr trade into foreign 
parts, which was to establish an agency in Japan, but were not suc- 
cessful. Incidentally, would say our home market is the best for our 
line; in fact, America consumes more paint than all the rest of the 
world. 

5. The high tariff of Canada and the high and irregular tariff of 
Mexico prevents our selling paints in the two countries, which would 
otherwise be the most favorable to our product. 

6. 15o changes in the tariff have recently been made which seriously 
affect the sale of paints of our own special manufacture in foreign 
countries that we are aware of. 

7. A reduction of customs duties in Canadian provinces would 
especially aid us in selling our product in that section. There is so 
little demand for paint in other countries that we have paid very little 
attention to the conditions elsewhere. 

8. The volume of our business is not as great as it was six years ago. 
It has decreased materially since 1893. 

9. Present selling prices are about the same as those of six years ago. 

10. Foreign competitors have the advantage of us in the cost of labor 
only, so far as Ave are able to judge. 

11. In most products in our line we can fairly compete with foreign 
manufacturers in quality, but not in price, owing to the greatly ad- 
vanced cost of labor in this country over that of most other countries, 
and labor is the principal cost of our production. 

12. Our personal experience will not warrant us in expressing an 
opinion on this question, but from information at hand we should judge 
that the reciprocity treaties of 1890 were most favorable to our export 
trade generally. 

13. We do favor the application of the reciprocity principle to future 
tariff legislation and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties so far as practicable. 

To sum up : We are in favor of reciprocity that is really reciprocity, 
based on good judgment and common sense; that will go hand in hand 
with an amount of tariff sufficient to protect American industries and 
American labor, and furnish adequate revenue to meet the expenses 
incurred in maintaining our Government. 



H. K. Mulford Company, Philadelphia, Pa. 

2. Manufacturers of pharmaceutical products, principally compressed 
tablets, triturates, lozenges, and hypodermics. 

3. O) $150,000. (b) 100 employees, including salesmen, (c) $250,000. 

4. (a) At home, (b) Some little abroad. 

5. Both direct to foreign dealers, also commission houses. 

6. (a) Yes, some little, (b) By means of advertising, (c) With partial 
success; principally in the Latin- American countries. 

7. Yes. Customs duties. ^Reciprocity. 

8. The writer is not sufficiently familiar with the changes in the tariff 
laws in the foreign countries to speak intelligently on the subject. 

9. It would give us an equal opportunity with European markets, 
more particularly in our trade with the Latin- American countries, with 



RECIPROCITY STATEMENTS. 447 

whom, we believe, a large and satisfactory business could be established. 
The duty on our products is almost prohibitory in competing with Euro- 
pean countries for the trade, for the reason that most of our finer chem- 
icals, used in manufacture of our products, are products of the European 
laboratories, upon which there is a duty, putting us at a disadvantage 
when endeavoring to create a market beyond our own for our products 
whereupon a duty has to be paid, since these European countries do not 
have to pay as much for the original article on account of the duty 
already mentioned. ' 

10. We are unable to give an answer, since less than six years ago 
our company was organized. 

11. There has been a decline in the cost of most all chemical prod- 
ucts -, no decline in wages; cost of raw material is less; transporta- 
tion charges by land and sea are in some instances less. 

12. Our selling price compared with five years ago is on an average 
of 50 per cent less. 

13. We have practically no competition from foreign manufacturers 
in our own country, but they hold the trade for our class of products 
in the Latin- American countries. 

14. European countries possess the advantage of securing many of 
the chemical products used largely in the manufacture of our line, upon 
which they do not have to pay duty. As an offset to this we have 
special machinery greatly superior to that which is used in the foreign 
countries for producing products in our line. Our rate of wages is very 
much in excess of their own, on an average of 100 to 200 per cent above 
that paid by themselves. 

15. Were reciprocity generally extended with the Latin-American 
countries it is our belief that we would be able to successfully compete 
with foreign manufacturers in our line and to eventually control the 
entire market for pharmaceutical products. It is questionable to what 
extent inroads could be made in supplying the European market. 

10. Our line has largely increased during the last five years, which 
is due almost entirely to the fact of its being a new and popular one. 

17. It is problematical as to how much of our possible product would 
be consumed in the United States by the domestic market. 

18. The reciprocity treaties made in 1890 were unquestionably favor- 
ably to the export trade of the United States, and the repeal was a 
serious blow to manufacturing interests so far as their further securing 
foreign business. 

19. Any laws hostile to the manufacturing interests are unquestion- 
ably reflected to that of all trades and farming products. 

20. We favor the application of the reciprocity principle to future 
tariff regulations, more particularly to the Latin- American countries. 
This is a market which we believe legitimately belongs to the United 
States. The reciprocity principle should be applied in its freest sense. 

As a manufacturer, but more particularly as a citizen of the United 
States, the writer is deeply interested in seeing closer relationship 
existing between the American countries, believing it to be for the best 
interests of us all. 



Seabury & Johnson, manufacturing pharmacists and chemists, New York* 

2. Our products represent legitimate pharinacopceial, medicinal, surg- 
ical, and antiseptic materials. 

3. We are in active communication in a business way, direct and 
through our agents in London and Hamburg, with all civilized nations. 



448 RECIPROCITY STATEMENTS. 

4. For nearly twenty years we have devised ways and means for 
securing foreign business, and have now a status in Europe, northern 
Africa, Ohina and Japan, Australia, East and West Indies, and South 
America; but it would be manifestly unfair for me to answer this ques- 
tion in detail, for the reason that it has cost us more than a quarter of 
a million dollars to acquire this trade; that is a part of the capital in 
our business — brains — and we do not propose to write prescriptions for 
other manufacturers; let them buy their experience by intelligent intro- 
spection and study and risk of capital. We are not in business for 
health alone. 

5, 6. As you know very well that for their own protection many of 
the European countries have adopted a protective system, more or less 
discriminating, by approving of our policy. The French law is abso- 
lutely proscriptive in our line of goods. It was only recently that the 
French Academy of Medicine have by special enactment allowed lines 
of our products to enter into their ports upon the ground that French- 
men have not as yet been able to produce similar goods in our branch 
of pharmaceutical chemistry. The Eussians are also proscriptive pro- 
tectionists. Reciprocity with these countries is the only remedy upon 
an equitable basis of exchanges. In a great many foreign countries 
medicinal articles are usually submitted to an academy of medicine and 
pharmacy. They must indorse such medicinal preparation before their 
Governments will permit them to enter into the custom-house. 

7. About a quarter of a million. 

8. Domestic trade has been reduced in volume on the ground that 
the Congress contains too many legislators who are inexperienced in 
commercial, financial, and practical questions. If 75 per cent of our 
legislators were practical men we never would have been precipitated 
into the misfortunes of the past few years; we all have suffered, directly 
and indirectly. 

Our people are economizing, and, so far as commerce is concerned, 
instead of buying a three months' stock they are buying goods from 
"hand to mouth," to use a commercial expression. With the return of 
the methods, ways and means, and principles of the Republican party, 
I know (for I am not a " doubting Thomas") that trade will everywhere 
revive, and there will be a general restoration of confidence in our 
national affairs. 

9. The selling prices of goods at the present time, in my judgment, 
have reached their minimum. Competition has been so intense for 
home trade that a great many manufacturers conducting extensive 
establishments throughout the entire country, when requested to recite 
their views on the situation, stated that they were doing a fair business, 
but, in the language of the poet, so far as profits were concerned, they 
could with the aid of a microscope see as a result of a year's business 
"an elegant portion of fried snowballs." With the general resuscita- 
tion of trade and commerce at home, and a reenactment of the McKin- 
ley bill, slightly modified, the prosperity belt will once more be seen in 
the dim distance. Values of home products at the present time are 
extremely low. 

10. Cheap labor and long hours ; in some countries even Sundays are 
included. Transportation charges are generally lower on the other 
side, on account of the runs being so much shorter. 

11. We can compete with foreign manufacturers in our line on almost 
equal terms, on account of ingenious machinery and new processes, pro- 
vided they will make the same quality of goods. When the German 
commissioner was asked in 1876 how German manufactures compared 



RECIPROCITY STATEMENTS. 449 

with American goods, he assured them that in contrast they were classed 
among those that were u cheap and nasty." 

The goods which we manufacture are employed chiefly by professional 
men, and they want the best, and we make them. 

12. Keciprocity treaties undoubtedly lead to close relations with those 
to whom we enter into treaties, but after all we have been for years 
embarrassed by not being in possession of a merchant marine service, 
and until the latter is encouraged by our people upon the basis of a 
gratuity of some sort — term it a subsidy, if you like — we will never be 
able to accomplish the objects involved in reciprocity. 

The American ship carrying goods from New York or from any port 
in the United States to any foreign country can be regarded almost as 
I would regard a salesman that is traveling throughout the country or 
world in our interest. Jointly with a marine service we also must 
establish national banking facilities — they are collateral necessities. 

13. "And don't you forget!" it, we must make markets for our sur- 
plus products. Naturally, importers and traders who are not interested 
in the prosperity of this country will have no sympathy with this 
question, and preach Oobden Club sermons for the benefit of English 
interests. 

"Josh Billings" used to say on general principles that he did not 
care to give people advice unless it was solicited ; I see you wind up your 
circular with a wish that voluntary information will be cheerfully 
received j I accept your invitation. 

I have for years pleaded for a tariff commission to settle all of our 
commercial questions and also to create a new Cabinet officer, secretary 
of commerce. I sent Senator Cullom simTe Tpomts on this question ; it 
has been a hobby Of mine for twenty years. A secretary and a com- 
mission, the latter to be composed of men especially trained to examine 
all economic, tariff, and commercial problems, and to be appointed with- 
out reference to their political prejudices, could easily settle to the 
satisfaction of the entire country just where the interests of the United 
States lie. From my standpoint such questions are easily solved, 
provided your cranium is built the right way. 

Second. The Postmaster- General could recommend to the Congress a 
law establishing gratuities to all accessible points, in order to bring 
about a closer relationship with such nations that we feel inclined to 
enter into with reciprocal commercial treaties; in other words, u Blaine- 
ism" from stem to stern is the true policy. He was a good enough 
skipper on this subject for any of us to follow; he had the right idea; 
but those collateral points previously alluded to must become a part of 
reciprocal treaties — money exchanges, transportation, and the reciprocal 
interests entered into. Those three points must be established con- 
nectively before success can be attained as a whole. Subsidies repre- 
sent one third of the whole, merchant-marine service another third, and 
reciprocal treaties bind the other two-thirds. 

Third. Another suggestion that I would make would be for the Sec- 
retary of State to interest not only our ambassadors, ministers, and 
consul generals, but consuls everywhere to suggest to the Department 
the best way to obtain the trade at their respective countries or ports. 
In fact it should be the duty of our ministers everywhere to submit 
annually to the State Department a report on reciprocal trade interests. 
When we get ourselves into the form here cited as a postscript, with a 
fairly high proscriptive tariff, then "Old Glory" will once more estab- 
lish its right to the commercial supremacy of the world. The North, 
South, East, and West will all share in the general prosperity. As a 
H. Eep. 2263 29 



450 RECIPROCITY STATEMENTS. 

matter of fact, a nation after all is merely an extremely large family 
whose business should be settled for their own interests and not adjusted 
by aliens. 

The writer has made the circuit of the commercial world at least a 
dozen times in the last twenty -five years, so the court knows just 
exactly what it is talking about. 



The Josephine Moore Company, Chicago. 

We manufacture, mostly for the wholesale trade, toilet preparations 
for ladies. Our foreign trade extends now to France and Canada, but 
while we are under this present depressed trade condition, will make no 
further efforts to extend our foreign trade. Our business relations with 
business men have compelled us to consider more and more our national 
affairs, and, as our American market is the best in the world, we think 
that an almost ideal national condition would be for us — (1) generous 
protection for our industries and our homes ; (2) intelligent reciprocity 
with other nations; (3) honest civil service; (4) international money. 

We are a firm of ladies, and have no votes bearing on the above 
conditions, but what influence we may have shall go in favor of them. 



The Sharpless Bye- Wood Extract Company, Philadelphia. 

1. The Sharpless Dye Wood Extract Company. 

2. Dyewoods and dyewood extracts. 

3. Capital, $1,000,000; number of persons employed, about 150; value 
of annual products, about $1,000,000. 

4. Our market is about 85 per cent at home and 15 per cent abroad. 

5. We sell direct to foreign dealers. 

6. We have made efforts to extend our foreign trade in Great Britain, 
Germany, Belgium, Holland, and Spain with fair success. 

7. The duty levied in France and Russia upon our products are prac- 
tically prohibitory. The ideas of protection to domestic industries (as 
well as for purposes of revenue) are so firmly established in both these 
countries that, although their markets are extremely desirable to Ameri- 
cans, we presume there would be little use in attempting to have them 
changed by ordinary diplomatic means, as regards our goods. 

8. Within a few years there has been a change in the French tariff 
which apparently makes it easier for foreigners to introduce dyeing 
extracts into that country, inasmuch as the previous law absolutely pro- 
hibited under any conditions the importation of foreign-made dyeing 
extracts, but the tariff duties are now placed at such a rate as renders 
competition from foreign lands impracticable. In Eussia until a few 
years ago there was no duty upon dyeing extracts, but in order to favor 
the manufacture of these goods on the Baltic, there was a duty imposed 
of about 50 per cent, which practically excludes all foreign-made dyeing 
extracts. 

9. The removal or reduction of the customs duties in Germany, France, 
and Eussia would open a large market to our products which we should 
be quick to avail of. 

10. The output of our establishment is about double that of six years 
ago. 



RECIPROCITY STATEMENTS. 451 

11. The present cost of production is considerably less than six years 
ago, on account of the adoption of approved appliances. Wages, raw 
material, and transportation rates cost approximately the same. 

12. Present selling prices are lower than those of six years ago. 

13. In Germany we meet with German manufacturers, and in Spain, 
Belgium, and Holland with both French and German manufacturers. 

14. Our foreign competitors have the advantage over us of very much 
lower wages and interest charges, and a slight disadvantage of trans- 
portation of crude material. 

15. In quality and price we can compete with any foreign manu- 
facturers we have met. 

10. The total product in the United States in our line of goods has 
probably decreased during the last six years, aniline dyes being used 
instead. 

17. The possible output of all of the factories in our line in the United 
States can not be absorbed by the domestic market. If all the foreign 
markets were open to us, probably one-fourth of their output, possibly 
one-third, could be exported to a profit. 

18. The reciprocity treaties made in 1890 do not affect our goods. 

19. I am not competent to answer this question. 

20. I favor the application of a reciprocity principle in future tariff 
legislation. 



GLASS, CROCKERY, ETC. 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, D. 0., March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest convenience, 
your views and suggestions, and such information as you are able to 
furnish upon the following points, namely : 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade ; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade ; and if so, can you suggest any means by 
which they may be removed ? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture 1 ? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade*? 

10. What is the output of your establishment compared with that of 
six years ago? 

11. How does the present cost of production compare with that of 
six years ago, including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets ? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

452 



RECIPROCITY STATEMENTS. 453 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity ? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to th^e 
manufacturers of the United States.) 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives ; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



EEPLIES. 

Homer Laughlin, Bast Liverpool, Ohio. 

2. White table and toilet wares ; also decorated wares. 

3. None. 

4. No. 

5. Obstacle, high labor. 

8. About same; less than 1892. 

9. Twenty per cent' and 25 per cent cheaper. 

10. They can ship to the chief wholesale distributing markets of this 
country 25 to 33J per cent cheaper than we can. 

11. Fully in quality; difficult in price. 

12. Favorable; repeal injured the purchasing power of part of our 
trade. 

13. Yes; if without sacrificing any American industry. 

A restoration of the so-called "moiety system" to prevent evasions of 
customs duties, and the application of specific and compound duties is 
of the highest importance in restoring trade. I believe that we should 
sacrifice no American industry in the name of reciprocity of trade with 
any foreign country. We should only sacrifice revenue upon a new 
competing product for the purpose of securing more foreign trade. 



454 RECIPROCITY STATEMENTS. 

Any act authorizing the President to negotiate reciprocity treaties 
should limit that power within these lines. To secure the home trade 
that Europe now gets in our own country is more important than any 
other trade. That England's foreign trade is immense in manufactured 
goods all concede, and some of our people look at it with longing eyes. 
Wheu it is known that one-half of all this is furnished by this country, 
and the other half only comes from all her favorite colonies and the 
rest of the world, don't it seem ridiculous that we should try to go 
away from home to meet her where she is so well intrenched, and 
neglect to take that part so easy to capture in our midst? I would also 
reach for the foreign trade easiest to get without sacrificing any other 
American interest. 



The Hartford City Glass Company, Hartford City, Ind. 

2. Manufacturers of window glass ; also ground and chipped glass. 

3. Capital invested, $450,000. When in full operation 550 people are 
employed, and the value of our output this year will be about $750,000. 

4. Our sales are confined strictly to the home market. 

5. We have made no sales direct to foreign dealers or through com- 
mission houses. As far as we know, none of our glass has ever been 
exported. 

6. We have made no direct efforts to acquire or extend foreign trade, 
as we have more than our hands full in protecting our home market in 
competition with foreign glass. 

7. Our location is such that we obtain no direct information from the 
customs authorities relative' to the manner of handling importations 
of window glass, but the Indiana manufacturers, composed of 35 com- 
panies, are under the impression that there is something wrong with 
the customs regulations relative to the collection of duties. Thomas F. 
Hart, of Muncie, Ind., who is selling agent for the Western Window 
Glass Company, has this question up with the Treasury Department to 
learn what instructions are given to the collectors by that Department, 
and if the instructions are sufficiently clear the fault must lie with the 
collectors at the different ports. Most of the glass coming in now is at 
Boston and £Tew York. Our manager has not been familiar with 
importations for the past five years, but states that previous to that 
time window glass was brought into this country in a very careless way. 
Importations were generally made in full cargoes, and great concessions 
were obtained on account of breakage that the importers were not 
entitled to. We do not know what facilities they have for the payment 
of duties, if any, but the Indiana manufacturers thought enough of the 
point to start an investigation. 

8. The changes that have occurred most recently in the tariffs of 
foreign countries do not interest us, as we are not exporters. This also 
applies to question No. 9. 

9. Answered above. 

10. Our company has been in existence since January, 1891, and 
during 1891 the output of our plant was about $200,000, or less than 
100,000 boxes of glass, while this year we will produce about 250,000 
boxes. 

11. The present cost of production is from 10 to 15 per cent less than 
six years ago, the reduction affecting both material and wages. 

12. At the present time the selling prices are about the same as those 
of six years ago, possibly a very little better, but during the interven- 



RECIPROCITY STATEMENTS. 455 

ing three or four years the prices were ruinous. Last year one half of 
our glass was sold at less than cost of production. 

13. The competition we meet with from foreign manufacturers is in 
our home market. In order to obtain any share of the Atlantic and 
Pacific coast business the makers of American window glass have to 
make an exceedingly low price — from 15 to 25 per cent lower than cur- 
rent prices in effect at interior points; and in some instances we have 
heard of foreign glass being sold this year in Chicago in competition 
with the American product. 

14. Our foreign competitors have a great advantage over us in the 
cost of labor, and by shipping their glass in cargoes at the special rates, 
they can obtain from Antwerp and other foreign ports to New York 
and Boston lower rates than we can obtain from Indiana to New York. 
This does not apply alone to window glass, but we have known, within 
the past year, of shipments of salt cake coming from Liverpool, being 
delivered in Hartford City at 20 cents per 100 pounds, while the rate to 
New York City is 16 cents. 

15. We are able to furnish window glass equal in quality to the 
foreign in every respect. The question of price has been answered 
above. 

16. At present the total output of window glass in this country is 
larger than it has been for several years, although we do not believe 
there has been any increase in the capacity of the plants. The dis- 
astrous years which extend back to 1893 closed up a great many fac- 
tories and they remained closed until those factories that remained in 
operation commenced to see a little profit on the advance in prices, 
when they went into operation again. There are probably more pots 
in operation now than there has been for the past three or four years. 

17. We believe that with no increase in the capacity of the factories 
for the manufacture of window glass the present and possible output 
can be marketed at home; providing, of course, that American glass 
is not displaced by the foreign article, which is now coming into the 
country at the rate of 1,500,000 boxes per anum. If this million and a 
half boxes continues to come to the country, and the factories are oper- 
ated to their full capacity, it would make it necessary for the home 
plants to close down their factories for a sufficient length of time to 
curtail the production up to this quantity, or to seek new markets — 
necessarily foreign markets — in which to dispose of the excess. 

18. We are not able to give a satisfactory reply. 

19. The same. 

20. We favor the application of reciprocity principles for future tariff 
legislation. 



Union Porcelain WorTcs, Brooklyn, N. T, 

2. Manufacture a general line of hard vitreous porcelain, generally 
known in this country as china ware, for table use and electric insula- 
tion. 

3, 4. Have very little foreign trade and do not specially seek it, for 
the reason that the manufacturers of the United States, except in a few 
instances, had better get much nearer the demands of their own country 
than they have ever been before they seek a foreign market. 

5, 6, 7. These questions I have not studied. 

8. Only about half the volume it was three, four, five, and six years 
ago. 



456 RECIPROCITY STATEMENTS. 

9. Our selling prices are about 33 J to 40 per cent less than three, four, 
five, and six years ago, which means that our profits are all gone and 
our capital impaired to keep our factory open. 

10. Principally in cost of labor. 

11. We can equal foreign manufacture as to quality and are compelled 
to meet them as to prices, but it is ruinous, and would close our factory 
were it not for the hope that our tariff laws will soon be restored to the 
McKinley standard ; and the free list of that tariff should be vastly 
reduced. 

12. Beyond a question the effect of the reciprocity treaties as partially 
developed under Harrison's administration were favorable to the de- 
velopment of an export trade, and the repeal of that law was most 
unfortunate and a gross political blunder. 

13. I do favor the application of the reciprocity principle to future 
tariff legislation, because it gradually provides a way to an outlet for 
our surplus as we approach that point, and materially assists the farm- 
ing and shipxnng interests. The shipping interest we can not foster too 
much, for every line of steamers that sail to a foreign port should be in 
some way subsidized, either direct or indirect. Export trade can not 
be built up where there is no line of steamers running at certain fixed 
dates, but restricted to North and South America and adjacent islands. 
The old European nations will for a great many years to come have 
cheaper capital and cheaper labor, and that cheap labor is better drilled 
into special conditions which makes cheap labor produce still cheaper. 
Hence, no bargain can be made between us that will result to our 
advantage. In short, make commercial treaties with all whom we of 
the United States can excel in manufacturing ; make none with those 
who can excel us. As to authorizing the President alone to negotiate 
commercial treaties without the advice and consent of the Senate needs 
consideration. If that is thought to be wise, the law should be care- 
fully drawn and restricted. 



JR. M. Bietz Company, New York, 

2. The line of export trade which we are anxious to develop is tubular 
lanterns and street lamps. 

3. Our foreign trade is at present with the West Indies and South 
America. 

4. We have made determined efforts to build up a foreign trade. 
With that object in view we have sent travelers to South America with 
complete lines of samples, and have met with gratifying success except 
in Mexico, Peru, Chile, and Brazil. 

We believe that those countries would provide first-class markets for 
our goods if the conditions were such as to make it possible to effect 
reciprocal arrangements. 

5. There are many discriminations and obstacles which prevent the 
extension of our export trade which could be removed. The customs 
laws in effect in South American countries is the principal, and, we may 
add, almost the only barrier. In our opinion these could be removed 
or materially reduced by reenacting the reciprocal law, which was 
embodied in the tariff act of October 1, 1890. 

6. We can not point to any special changes in the tariff acts of the 
countries to whence our goods are exported. The abrogation of the 
commercial treaties by the tariff act of August 28; 1894, was a severe 



RECIPROCITY STATEMENTS. 457 

blow to the export trade, and resulted in many changes in the tariff 
laws of South American countries, as well as the West Indies. 

7. The removal or reduction of the duties imposed on our goods by 
the countries mentioned would increase our export trade fully 100 per 
cent. 

8. We have increased our export trade during the past six years 
fully 300 per cent. 

9. Our export prices are about 10 per cent lower than they were six 
years ago. > 

10. Foreign competitors have decided advantages over us in the cost 
of material and in transportation facilities. They can purchase tin plate 
cheaper because it can be obtained free of duty. That factor could be 
removed if the Treasury Department would provide practical regula- 
tions for the execution of the drawback law, which authorizes the allow- 
ance of drawback of duties paid on materials entering into the manu- 
facture of exported articles. Under the past administration this law 
was fairly and honestly administered, but under the existing regime at 
this port the merest technicality has been pounced on as an excuse to 
deny the payment of the drawback. This is really a very serious con- 
sideration in the export trade, because the margin of profit is necessarily 
so small that it is absolutely essential that we should be placed on the 
same footing with our foreign competitors in so far as cost of material 
is concerned. 

11. We have no difficulty in competing with foreign manufacturers in 
so far as quality is concerned. In fact the quality of our goods has 
sold them, as our prices are about 15 per cent higher than those charged 
by our foreign competitors. 

12. There is no question but that the reciprocity treaties made in pur- 
suance of the tariff act of October 1, 1890, were beneficial to the export 
trade of the United States, and that their repeal proved a serious blow 
to many exporting manufacturers. So far as we are concerned their 
repeal gave Germany a decided advantage over us, especially with Brazil 
and Mexico. Large contracts have recently been placed in Germany 
for lanterns and street lamps — more especially the latter — which for- 
merly were awarded to us. 

13. We certainly do favor most heartily the application of the reci- 
procity principle to future tariff legislation, and the enactment of a 
general law authorizing the President to negotiate reciprocity treaties 
with both European and American nations so far as possible. 

It is now generally acknowledged that the revenue must be raised 
chiefly in the future from a tariff on imports. This will of course 
increase the cost of materials used in many branches of manufactures. 
If the drawback law is fairly and honestly administered under practical 
regulations in harmony with modern commercial conditions, the tariff 
on foreign materials will not affect the export trade to any extent worthy 
of mention. 



CLOCKS, WATCHES, FANCY GOODS. 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, D. C, March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses! 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago ? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets ? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

458 



» 



RECIPROCITY STATEMENTS. 459 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity 1 (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) / 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives ; but, it 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



REPLIES. 

The Ansonia Clock Company, New York. 

2. We manufacture clocks and all kinds of bronzes. 

3. Our business extends to all parts of the world. 

4. We have made efforts to do foreign business. First, by correspond- 
ence and catalogues; second^ by personal representation with the fol- 
lowing countries : We do business in Great Britain, France, Sweden, 
Norway, Denmark, China, Japan, East Indies, Australia, Brazil, Chile, 
Argentina, Mexico, Central America, and South Africa. 

5. Discrimination or obstacles in the laws and customs regulations 
exist in many countries. We suffer especially in Frauce, where the 
commercial treaty with Germany x^ermits German goods to come into 
competition with ours and be introduced at a much lower rate of duty, 
and on much more favorable terms. 

6. The same obstacle exists in Cuba and other countries. 

7. The removal of this discrimination against us would result in a 
considerable extension of our export trade. 

8. The volume of our business for export has not increased, com 
pared with the business done six years ago. 

9. The prices at which we sell our goods at present are decidedly 
lower than those which we obtained six years ago. 



460 RECIPROCITY STATEMENTS. 

10. Foreign competitors have the advantage of cheaper rates of 
freight, and the advantage also of certain custom -honse regulations 
and duties which permit goods to be introduced into the foreign 
countries at lower rates than ours. 

11. The quality of our goods is far superior to those produced by 
foreign competitors. The prices of our goods are higher. 

13. We most decidedly favor the application of the " reciprocity" 
principle for future tariff legislation. 



The Meriden Bronze Company, New YorJc, Hf. Y. 

1. The Meriden Bronze Company, Meriden; Conn., and 30 Park 
Place, New York. 

2. Lamps, gas fixtures, brass and onyx tables, ornaments, etc. 

3. Capital emploved, over $200,000 j employees, 175 ; annual product, 
$200,000. 

4. Market at home chiefly $ possibly 10 per cent abroad. 

5. Generally through commission houses for foreign trade. 

6. We have sent samples abroad and paid commissions to salesmen 
for South American and African trade, but with very little success. 

7. Our experience with foreign markets is not sufficient to give an 
intelligent reply. 

8. Same answer as No. 7. 

9. Same answer as No. 7. 

10. About the same. 

11. We have been obliged to reduce wages in an effort to sell at home 
in competition with imported lamps; yet our trade in lamps fell off 
largely last year, and our net loss for the year was $10,000, while 
importers of foreign lamps report a large increase in business and good 
profits. We can not compete with foreign ornamental lamps at even 
the present low wages and duties. Cost of material less than six 
years ago. 

12. Selling prices are about half those of six years ago. 

13. Killing competition in every market; but we would be satisfied 
with home market if properly protected. 

14. They have the advantage of lower wages, but we do not know 
about transportation, which is not a serious element in high-priced 
goods, such as we make. 

15. We can compete successfully in quality, but we are obliged to 
pay higher wages; and, in fact, workmen now receive such low wages in 
this country that they have no surplus for luxuries, and if paid at for- 
eign rate we doubt if they could live at all ; yet we can not do a profit- 
able business now, owing to imported goods being sold here below our 
cost of production. 

16. In fine goods the quantity has decreased, but there is a general 
tendency to decrease the quality in a vain attempt to compete with 
foreign goods. 

17. In fine goods the home market would absorb far more than is 
now made if it were not for foreign competition. It would be an 
object lesson for you to visit New York City and go through the 
immense stores which sell for foreign manufacturers from sample for 
importation, and are growing rich thereby. In cheaper goods, where 
the most improved machinery is employed in turning out quantities, we 
could supply the world. 



RECIPROCITY STATEMENTS. 461 

18. Favorable, and their repeal cut off a large part of the trade. 

19. Anything which lowers wages reduces the laborer's power to buy 
even farm products, and the farm and garden products are reduced in 
price and quantity in proportion to the ability of the workmen in neigh- 
boring cities to purchase. The farmers about Meriden have*suffered in 
proportion as the employees in the factories in the city have had their 
wages reduced and labor taken from them by foreign competitors. 

20. We do, and we also favor a protective tariff which will enable us 
to market our fine goods at home and pay fair wages to our employees^ 
with a living profit to ourselves. 

It is undoubtedly true that a large part of the depression in business 
is due to the fact that there is a large army of unemployed workmen in 
this country, and those who are at work are not properly paid, owing to 
the low prices and foreign competition. We can expect better times 
when there is labor for all who are willing to work at wages sufficient 
to provide the necessities of life and leave them a surplus for some of 
the luxuries, but until then we can have little hope for a revival of 
trade. 

These answers and remarks may not all of them come directly under 
the special subject of your inquiry, bat nevertheless we feel that there 
is room for legislation upon the broader grounds suggested, and would 
be glad to have you interested in securing America for Americans. 



Keystone Watch Case Company, Philadelphia, Pa. 

2. Manufacturers of watch cases. 

3. Capital, $800,000; now employ about 650 persons; value of annual 
product, about $1,000,000. 

4. We find our market both at home and abroad; the latter is com- 
paratively small as yet and amounts to only about 5 per cent of our 
entire business. 

5. We sell both direct to foreign dealers and through commission 
houses. 

6. We have made direct efforts to extend our foreign trade upon the 
Continent of Europe, in South Africa, South America, Central America, 
Mexico, Canada, Australia, New Zealand, China, and Japan by adver- 
tising in the journals which circulate in those countries, by correspond- 
ing and sending illustrated catalogues (and in some instances samples) 
to the dealers in those countries, and by solicitation of salesmen. In 
only one or two instances have these salesmen represented us solely, 
nearly always being men who represented several lines of manufactured 
goods on commission. 

As indicated by the small proportion of our sales in foreign coud tries, 
we have as yet only met with indifferent success. 

7. Mexico exacts a duty of $7 each upon watch cases which will 
stand the acid test, consequently our filled cases, that is, cases made 
with two plates of gold and a plate of composition metal between, and' 
which we guarantee to wear for twenty years and which we sell at 
about $10, have to stand the same duty — viz, $7 — that the fine $50 solid- 
gold case does; consequently, it is almost impossible for us to do any 
business in this line of goods, although they are in demand in that 
country and with a fair proportion of duty could be sold to a large 
extent. 

8. New South Wales has recently been made a free port. 



462 RECIPROCITY STATEMENTS. 

9. We think there is no question but that the removal of customs 
duties by foreign nations so that our goods could be placed at the low- 
est possible price with the people of those nations would assist us in 
finding a market for them. 

10. The output of our establishment at the present time is about 
60 per cent of what it was six years ago. 

11. The present cost of products is slightly decreased as compared 
with that of six years ago. 

12. Selling prices, at this time, are about 10 per cent less than they 
were six years ago. 

13. Our greatest competitors in foreign markets are the manufac- 
turers of Switzerland j we come in contact with them in all foreign 
countries. We also have the competition of tne English manufacturers 
in Great Britian. 

14. Our foreign competitors have great advantage over us in cheaper 
labor and in cheaper transportation. At this time we are particularly 
handicapped in our endeavor to find a market in China and Japan 
because a clause of the interstate act forbids railroads from taking gold 
or silver watches as freight. We are, therefore, forced to ship across 
the country by express, and as the express business is controlled by 
Wells, Fargo & Co., we are forced to pay very high rates. Only a few 
days since we had to pay $38.10 expressage upon a package to Japan 
which would have been carried as freight for $3.50. We could send 
these shipments via Liverpool very much cheaper, but the greater 
length of time required is prohibitive. 

15. We have no trouble at all in competing with foreign manufac- 
turers as to. quality, but, owing to cheaper labor and transportation, 
they are enabled to undersell us. 

16. The total product in our line of business began decreasing in 1893, 
and at the present time is not more than 60 per cent of what it was prior 
to 1893. 

17. At the present time not more than 60 per cent of the possible out- 
put of watches can be absorbed in this market. Consequently, if all 
manufacturers were now producing to their full capacity at least 40 per 
cent of their output would have to find a market elsewhere. 

18. We noticed in two or three instances, after the arranging of the 
reciprocity treaties, that there was a general tendency toward more 
universal and closer relations with some countries, and a desire on the 
part of the merchants of those countries to do business with the United 
States. That tendency seems to have been checked, and we attribute 
it to the repeal of the treaties. 

20. We answer, most emphatically, yes. 



FURNITURE, PIANOS, AND ORGANS, 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, iS. (7., March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade ; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade ; and if so, can you suggest any means by 
which they may be removed? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago ? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land ? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets ? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

463 



464 RECIPROCITY STATEMENTS. 

17. What proportion of the total present and possible outpnt in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers iu your lines were producing to 
their full capacity ? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the 
manufacturers of the United States.) 

18. Was the general ejfect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly! 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and' the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Eepresentatives ; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman. 



BEPLIES. 
W. W. Kimball Company, Pianos and Organs, Chicago. 

1. Firm name, " W. W. Kimball Company." Incorporated under the 
laws of the State of Illinois. 

2. Manufacturers of pianos, and reed, portable, and stationary pipe 
organs. 

3. Amount of capital stock invested, $2,750,000; number of persons 
employed, 1,400. 

4. Practically all our trade is home market. 

5. What we sell abroad is sold direct from our Chicago office, and not 
through commission houses. 

6. We have not made any special effort to extend our trade abroad. 

10. The output of our factories for 1896 will be 8,000 pianos and 
12,000 organs. We can not estimate it as compared with six years ago, 
as at that time we were making but very few pianos. 

11. The cost of production at the present time in our shops is pos- 
sibly a little less than six years ago on account of improved machinery. 

12. Our selling prices are a little less now than six years ago, not 
because we can afford it, but owing to the depressed condition of the 
country we are obliged to make a sacrifice so as to work off our stock 
and try and keep our men at work. 

13. We do not experience any difficulty in meeting competition, either 
at home or abroad. 



RECIPROCITY STATEMENTS. 465 

16. The product in our line, taking pianos and organs together, we 
do not think has increased any during the past six years. From 1889 
to 1892 the trade materially increased. From 1892 to the present time 
there has been a large decrease. 

18. The reciprocity treaties of 1890, in our judgment, were very favor- 
able to the United States, and should not have been repealed. 

19. Any enactments that effect the general prosperity of the country 
must have a like effect on the farmer ; hence depression in manufactur- 
ing lines means depression for the farmer. 



J. Bornette & Bro., Cincinnati, 

2. Manufacturers of desks and office furniture. 

3. England, Africa, Australia, Central and South America. 

4. We have made different efforts to extend our foreign trade — 
through advertising, through export commission houses, and mostly 
by correspondence. We have had good success, and feel well pleased. 

5. We know nothing regarding any obstacles or discriminations in 
laws or customs regulations of any foreign countries, and should like to 
be better posted, if any exist. All we know is that some countries 
have too high duty, thus barring us out. 

6. In answer to question 6, we are not aware of any recent changes in 
tariffs of foreign countries. 

7. By the removal or reduction of the customs duty imposed by 
Germany, Holland, Belgium, etc., we could undoubtedly increase our 
sales in those countries. 

8. Six years ago we did very little export, and to-day we export 50 
per cent of our manufacture. 

9. The present selling prices in domestic goods are much less than six 
years ago, but our export prices have changed but very little. 

10. Our foreign competitors have no advantage only in labor. They 
desire American walnut and oak, and therefore demand our goods. 

We have no competition with foreign merchants, and the only draw- 
back we have is the competition we have with American manufacturers 
who wish to get a start there. 

In answer to question 12, can say we are ignorant of the fact apper- 
taining to this and can not answer you on this. 

To question 13 we must answer "yes," to our good; but would be 
detrimental to others. 

We have further to state that there is a great demand for American 
goods in foreign countries, and if the trade desired is solicited in the 
right way and we Americans give them good, honest goods, we are 
bound to do a good business and with an increase every year. For the 
last three years we have run our factory full time and full force, and 
export trade did it. 



Mason & Hamlin Company, pianos and organs. 

3. About $800,000. Four hundred persons employed. Annual prod- 
uct, about $1,000,000 per catalogue price. 

4. Both foreign and domestic. Say, one-fourth foreign j balance 
domestic. 

5. Both through dealers and commission houses. 

H. Eep. 2263 30 



466 RECIPROCITY STATEMENTS. 

6. Yes; by travelers in Canada, European countries, South America, 
and Mexico, with fair success. 

7. Yes ; Canada, France, Mexico, etc. 

8. Do not know of any. 

9. Would be a great benefit. 

10. About four-fifths. 

11. About the same. 

12. About the same. 

13. English and German. In Europe, Canada, Mexico, South Amer- 
ica, Dutch and English colonies. 

14. Goods cost 30 to 40 per cent less. 

15. Compete successfully in quality, but can not in prices. 

16. Organs about 25 per cent less. Pianos materially increased. 

17. (a) Three-fourths, and perhaps more, (b) One-fourth. 

18. Treaties favorable. Eepeal of treaties unfavorable. 

19. Not in our line. Do not know. 

20. Yes, most heartily. 



M. and M. Box Company, Marinette, Wis, 

1. Marinette and Menominee Box Company. 

2. Box shooks (boxes in the knockdown). 

3. Capital, $50,000. Employ 100 men. Annual product, $150,000. 

4. Three-fourths in United States, one-fourth in southern Eepublics. 

5. Direct to consumers. 

6. Yes. 

7. No. 

8. None. 

9. Can not tell. An extended trade in other lines with South America 
and Australia, with cheap transportation, would give us some business. 

10. About the same. 

11. About the same. 

12. About 8 per cent less. 

13. Canadian and Norwegian in Europe; Canadian in Eastern States. 

14. Lower wages, cheaper lumber, quicker means of transportation. 

15. Our quality the best; our prices a little higher. 

16. Increased. 

17. Capacity to produce in United States is 50 per cent more than 
requirements. Could produce for export $10,000,000 to $40,000,000 
worth. 

18. No change noticed. 

We respectfully suggest that any change in tariff that allowed Cana- 
dian box shooks free into this country would close half the factories in 
our line. We estimate there are over 200 factories, employing 25,000 
men only to cut lumber into shooks, to say nothing of those employed 
to produce the lumber, nails, twine, etc. 



Story & Clark Piano and Organ Company, Chicago, III, 

2. Pianos and organs. 

3. Capital, $450,000. People employed, 300. Annual product 

$375,000. 

4. Two-thirds at home; one-third abroad. 



RECIPROCITY STATEMENTS. 467 

5. Have own house in London, through which we supply foreign 
dealers. Shipping facilities can only be had from Great Britain to 
many places in the world. 

6. Our foreign markets are Germany, Bussia, Sweden, Australia, 
New Zealand, and Great Britain. 

7. Many countries, like Mexico, have what amounts to prohibitive 
tariffs. Can be removed only by reciprocal arrangements. 

9. It would aid materially; probably double our foreign trade. 

10. About one-half. 

11. About 35 per cent less. 

12. Forty per cent less. 

13. Canada, England, Germany, France. Only in foreign markets. 

14. Cheaper labor and established lines of transportation. 

15. By superior quality only. 

16. Decreased. 

17. Perhaps one-third or one-half in the present depressed state of 
the country. Twice the present output could be made for export alone 
without increasing present capacity. 

18. Favorable. The effect of their repeal was injurious, 
-19. Disastrous, without doubt. 

20. We do, most decidedly. 



Tlie Standard Sewing Machine Company, Cleveland, Ohio. 

2. We manufacture and sell sewing machines and their parts. 

3. We have dealings with nearly all foreign countries. 

4. Our dealings are through our export agent in New York City. 

5. We are particularly hampered in Canada on account of duties. 
The only suggestion we can make is to have the laws repealed. 

6. We are not aware of any recent changes to affect us. 

7. The removal of duties on importations to foreign countries would 
largely increase our trade. 

8. Our export business for 1895 was 376 per cent more than six years 
ago. 

9. Our export selling prices are the same as six years ago. 

10. We have no data from which to base an estimate. 

11. The quality of our production is far better than any foreign man- 
ufacture, and we can get a higher price; but as the difference in our 
cost and that at which European nations, notably German, can produce 
machines is so great, it is difficult for us to work up a large trade at 
the increased price we are obliged to ask, notwithstanding the superior 
quality of the goods. 

12. The reciprocity treaty of 1890 made very little difference with our 
trade with South America, as it was mostly under contract, and the 
laws were not in effect long enough to give us an opportunity to test 
the ultimate effect upon the trade. We wish, however, to be understood 
as most emphatic advocates of reciprocity laws with other American 
States. 

13. We would have reciprocity treaties apply only to American coun- 
tries, for the reason that labor in our line of manufacture is so much 
cheaper in Europe that it would effect a radical decrease in the wages 
that we are enabled to pay or close our shops. This difficulty would not 
be met with in any of our American countries, especially those to the 
south of us. 



468 RECIPROCITY STATEMENTS. 

The Globe Company, Cincinnati. 

2. Business furniture, filing cabinets, office desks, furniture, etc. 

3. We do some little business with England ; also with Mexico, and 
occasionally with other countries. 

4. Have made no direct effort to extend our foreign trade until re- 
cently. We now have negotiations pending for a connection in London, 
and have also joined with some other parties in a joint representation 
in Mexico. It is still too early to judge of results. 

5. There are two obstacles that restrict the extension of our trade in 
foreign countries, one being the customs duties and the other being the 
lack of steamship and sailing-vessel service that I am informed other 
countries enjoy. As means of removing them, I would like to see rec- 
iprocity treaties established and steamship lines encouraged by sub- 
sidies. 

6. The abrogation of reciprocity treaties in several countries have 
undoubtedly cut off some of our trade. 

7. The removal or reduction of customs duties on goods of our man- 
ufacture would certainly be of aid, and would make export business 
easy in a number of foreign countries. 

8. The volume of our business is more than double that of six years 
ago. 

9. Our selling prices are probably 25 per cent lower than six years 
ago. 

10. Our foreign competitors have great advantages in cost of trans- 
portation to foreign markets, but in no other respect, unless they are 
favored nations. Their cost may be lower than ours, but the quality 
and style do not compare, and our goods would readily sell at fair value 
if the obstacles of tariff and excessive cost of transportation and poor 
facilities were corrected. 

11. We can readily compete with foreign merchants in quality and 
prices. 

12. The general effect of the reciprocity treaties made in 1890 were 
highly favorable, and their repeal was a sad disaster to foreign trade. 

13. We do favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law as mentioned. 

I fail to see how there could be any doubt or room for argument on 
question No. 13. 



White Sewing Machine Company, Cleveland, Ohio, 

2. Sewing machines. 

3. With nearly all civilized foreign countries. 

4. Our efforts to extend foreign trade have embraced the establishing 
by us of a wholesale agency in London, with the continent of Europe 
as its field. On this account we are unable, without correspondence 
with our office there, to furnish much detailed information as to tariff 
duties or other hindrances to traffic with many of the European states. 
Our direct dealings from the home office extend to South America, 
Mexico, Australia, New Zealand, Canada, and the British Provinces. 
These countries we reach through special traveling representatives, 
who solicit trade within their boundaries and under usual methods of 

commercial travelers. 

5. While there are duties and some slightly discriminating features of 
trade with some of the South American states, they are not sufficient, 



RECIPROCITY STATEMENTS. 469 

so far as they affect our line of business, to be especially objectionable 
to us, or act as a material hindrance to our representation. Canada is 
an exception. The tariff laws of Canada act in nearly a prohibitive 
manner to our business. 

0. ISTo recent changes have occurred, with which we are familiar, to 
materially affect us. 

7. A removal or reduction of custom duties in any direction where 
they now exist would, undoubtedly, aid us in the extension of our> 
export trade. 

8. The volume of our business, as compared with that of six years 
ago, is materially larger. 

9. Selling prices have been unchanged for six years. 

10. Foreign competitors have their main advantage over us through 
their being able to secure the services of labor more cheaply, their 
superior shipping facilities, and in the cost of transportation to foreign 
markets. 

11. We excel foreign producers in quality, and their advantage in the 
matter of juices arises, in our judgment and experience, from the causes 
last mentioned. 

12. We can not state any marked favorable or unfavorable results as 
the effect of the reciprocity treaties of 1890, but we are strongly in favor 
of the application of a reciprocity principle and in the enactment of a 
law authorizing the President to negotiate reciprocity treaties with both 
European and American nations. It is possible that we have already 
been benefited much more than we are appreciating. 



CARS, VEHICLES, ETC. 



CIRCULAR OF INQUIRY TO MANUFACTURERS. 

Committee on Ways and Means, 

House of Representatives, 
Washington, D. <7., March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties wonld be 
greatly obliged if yon wonld forward them, at your earliest conven- 
ience, yonr views and suggestions, and such information as you are able 
to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses f 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed ? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

470 



RECIPROCITY STATEMENTS. 47l 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural sur- 
plus for export if all manufacturers in your lines were producing to 
their full capacity ? (The purpose of this inquiry is to secure as accurate 
an estimate as possible of the necessity for new foreign markets to the / 
manufacturers of the Uuited States.) 

18. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

Those inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Representatives ; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant; 

A. J. Hopkins, Chairman. 



REPLIES. 
The Wells and French Company, Chicago, 111. 

The subject of the circular sent out by your committee on March 4 is 
of such great importance to this country that I ask permission to express 
an opinion, which is by way of fuller explanation of the subject and not 
an answer to any of the interrogatories made by your committee. 

You will receive so much more definite and important information on 
the subject of exportation of our manufactures, that I have only one idea 
to suggest in connection therewith, which may prove interesting enough 
to carry some weight with you, namely: Our country has a manufactur- 
ing capacity at present which largely exceeds its own requirements. 
The result of this condition of affairs is that we have constant changes 
in values and " ups and downs" in the life of the manufacturer. Depend- 
ent upon the conditions of our own consumption, we have no stability 
of prices and no certainty of a return for the work done. We have 
either very exaggerated prices or such that will not remunerate the 
manufacturer. 

The question is how to provide for this state of affairs, and relieve 
the country of any glut which may arise from unfavorable internal con- 
ditions. There is one way out of this difficulty, in my humble opinion, 



472 RECIPROCITY STATEMENTS. 

namely, to provide a dumping ground for the excess of our manufac- 
ture beyond our needs. This provided, we should have a more equal 
condition of prices and a proper compensation for work done in this 
country. This dumping ground is made use of by Europe in foreign 
countries, and its value is fully understood by English, German, and 
French manufacturers. 

If our Government were to provide for a liberal extension of our for- 
eign business, encouraging it and propagating it— as you know much 
better how to accomplish than I could suggest — we would have a stead- 
ier and more stable growth of our manufactures. Too great a variation 
of prices will unsettle the commerce of any country, as has been illus- 
trated better in the last twelve months than ever before. Provide for 
an overflow, and the contents of a vessel will be comparatively quiet. 

The questions now discussed by the National Association of Manu- 
facturers, and suggested by your circular, are of such great importance 
that I trust your associates will see the necessity of some determined 
and systematic action to accomplish what is required for this country. 

I will proceed to answer categorically your various interrogatories. 

1. The Wells and French Company. 

2. Manufacturers of all kinds of freight cars, street-railway cars, cast 
wheels, and combination bridges. 

3. Do not trade with foreign countries. 

4. Have not made any direct effort to extend foreign trade, for the 
following reasons: 

Competition with Central American and South American States, as 
well as with China and Japan, would be difficult, owing to the relations 
now established by European countries. The difficulty is also enhanced 
by the absence of proper transportation facilities. Being situated in 
the interior of the country, we could probably overcome the cost of 
transportation to the seaboard, but this would avail nothing, because 
the facilities for transportation from the seaboard to the foreign coun- 
tries is limited and unsatisfactory, compared with the opportunities 
offered by the European States. To ship to the Pacific Coast, where 
abundant transportation facilities exist for China and Japan, would be 
impossible, owing to the exorbitant rate of freight from Chicago to the 
Pacific Coast by rail. Our natural route should be via New Orleans 
and through a canal between the two hemispheres, thence further west. 

5. I am not aware of any discriminations or obstacles in the laws or 
custom regulations of any country that restrict or prevent the exten- 
sion of our trade. Impediments will naturally exist wherever the inter- 
course between countries is small. This friction can only be overcome 
by an extension of business. 

6. Unable to answer the question. 

7. Can not answer. Almost all railroad enterprises which involve 
our manufacture are receiving special legislation in the countries where 
they are located, and are generally exempt from payment of any duty 
on steel and rolling stock for the construction and operation of railroads. 

8. Volume of our business is exceptional. Our company is the only 
one which has been running continually since last October to its full 
capacity. (This refers to car works.) 

9. Selling prices are about 50 per cent less than those of six years ago. 

10. Question is too difficult to answer, concerning cost of merchandise 
as regards foreign competitors. Transportation charges are already 
referred to in a former answer. The lack of direct lines from the ports 
is the principal cause. 

11. We can compete with any country in quality and prices $ would 
be prepared to make more specific answer to this if desired. 



RECIPROCITY STATEMENTS. 473 

12. Having had but little experience in export trade, this question 
can only be answered in a general way ; believe that reciprocity treaties, 
particularly with southern countries, would be beneficial. 

13. Would favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties, with American nations in 
particular. 



Brownell Car Company, St. Louis, Mo, 

Our location, so far from the seaboard, practically prevents us from 
successfully competing for foreign business with firms more favorably 
located, so we do not feel a direct interest in the subject ; but as a general 
proposition, and in answer to the twentieth inquiry, we would say that 
we do favor the application of the reciprocity principles and the enact- 
ment of a general law authorizing the President to negotiate reciprocity 
principles. 

We believe that policy, if carried out, will have a tendency to increase 
the manufacturing, agricultural, and other interests of this country, 
and that in turn will tend to develop and enlarge our cities, which in 
turn will require more street cars, and so indirectly benefit our own 
business. 

Any legislation that will tend to develop the resources of this country, 
in our opinion, can not fail to be beneficial and desirable. 



The Norton Door- Check and Spring Company, Boston. 

The only article I manufacture is a door-check, and these are sold 
through an agent in London, who distributes throughout the Continent. 
I do not know the details of his business excepting in a general way, 
and in answer to your question 4 I will say that my foreign market is 
about as large as the one in this country. Incidentally, I have heard 
my agent say that the discrimination in France against articles, finished 
in nickel plate amounts to an entire prohibition of our goods in that 
market, as most of our product is finished in this manner. 

The output of our establishment is about the same as it was six 
years ago, and the cost of production has varied very little in that 
time. The selling prices are lower, but that is in consequence of com- 
petition. 



The Muncie Wheel Company, Muncie, Ind. 

2. Vehicles, wheels, and wheel materials. 

3. Sixty-four thousand dollars j 100 persons; $125,000. 

4. At home only. 

5. Do not solicit foreign trade. 

6. No. 

7. None. 

8. No. 

9. None. 

10. We are only five years old. 

11. Twenty-five per cent less than five years ago* 



474 RECIPROCITY STATEMENTS. 

12. Twenty-five per cent less. 

13. ]Sone. 

14. Have no foreign competition. 

15. Foreigners do not use our style of goods to any extent. 

16. Not much change. 

17. Fifty per cent. 

18 and 19. Can not answer them from actual experience. 
20. We favor these. 



Chattanooga Gar and Foundry Company. 

2. Eailway freight cars, car wheels, mine and plantation cars, and a 
general line of foundry work. 

3. One hundred thousand dollars; from 100 to 250 employees; from 
$100,000 to $200,000. 

4. At home. 

5. Do not sell outside United States. 

10. Only about one-half. 

11. Material is cheaper and wages lower, perhaps 25 per cent on an 
average. Transportation about the same. 

12. Considerably lower ; market unsteady; no ruling prices; cuts are 
made to keep business going, even at a loss. 

13. No foreign competition. 

14. Cheaper labor; cheap transportation, to reach coast cities. 

15. Foreign goods in my line do not reach this territory. 

16. Have seen no late statistics. 

17. Demand off, until many works are idle. 

18. Eeciprocity of 1890 was favorable to export trade, creating a 
demand, and repeal of treaties has disturbed credit with foreign coun- 
tries; in other words, our nation repudiated its obligations without 
negotiation or consent of other parties. 

19. Statistics show a large falling off in the demands for products of 
the farm since the repeal of reciprocity. 

20. Yes; the reciprocity clause of the McKinley law of 1890 was a 
" stem- winder," so to speak; the principle embodied in that reciprocity 
was first-class. 



The Tricycle Manufacturing Company, Springfield, Ohio. 

We do most emphatically " favor the application of the reciprocity 
principle to future tariff legislation." 



Columbus Buggy Company, Columbus, Ohio. 

I received your invitation to be present at a hearing of your com- 
mittee upon the subject of reciprocity and commercial treaties. The 
industry that I am most largely connected with is that of the manufac- 
ture of carriages and vehicles. The raw material and the manufactured 
articles that enter into the construction of vehicles are all produced in 
the United States. The average number of persons employed, when 
business is in its normal condition, is about 1,500, and the annual 
product averages, including carriages, wagons, and carts, 1,250,000 vehi- 



RECIPROCITY STATEMENTS. 475 

cles, amounting to $125,000,000. The market for our manufactured 
product is both at home and abroad. About 90 per cent of it is at home 
and 10 per cent abroad. Export sales are made through commission 
houses and direct to foreign dealers. We are and have been continu- 
ally making efforts to extend foreign trade by correspondence, liberal 
advertising, and through traveling representatives. The foreign trade 
has been largely in the Latin nations, and England, Germany, Belgium, 
and South Africa. The output of our establishments has been curtailed 
about 25 per cent compared with what it was six years ago. The eos^t 
of the production of the articles manufactured by same comparison, 
both in wages and material, is some less, but the selling price is corre- 
spondingly much less. The total present and possible output of the 
vehicles manufactured could be absorbed by the domestic market if the 
demand and price of farm products and commodities of all kinds would 
assume normal conditions. The general effects of the reciprocity treaty 
made in 1890 certainly were favorable to the export trade of the United 
States. The results of their repeal have been to kill in its infancy a 
new trade that had just been established before it had been properly 
tested or appreciated by the nations that had entered into a reciprocal 
treaty with the United States. I favor the application of reciprocity 
principles to all future tariff legislation. The benefit of reciprocity to 
our industry may not be materially affected directly, but indirectly it 
will, by furnishing a better market for the American products. 

There is no reason why this country should not furnish Cuba and the 
Latin-American nations with all of their coal, meats, cereals, bread- 
stuffs, machinery, and manufactured articles that they do not produce, 
in payment for our coffee, sugar, molasses, hides, and other articles that 
we purchase. If the reciprocal arrangements made in 1890 had not 
increased our trade and decreased foreign trade, the chambers of com- 
merce of Great Britain and all the other principal cities of Europe would 
not have petitioned their governments to place them in position where 
they could comj^ete with this new American competitor. All Europe 
hate American competition and will do all they can, by every means in 
their power, to prevent America from extending her commerce to the 
other nations of the world. 

The statistics showing the increase of our foreign trade with the Latin 
and other nations that had commercial treaties with the United States 
for a few short months, and the decrease in the exports to those same 
countries from European countries, demonstrate the benefit to be derived 
by having reciprocal agreements. The resources of the United States 
are greater than those of any other nation, and our prosperity should be 
correspondingly greater. Beciprocity is nothing more nor less than a 
business proposition. We are not unlike other nations; each aims to 
sell her manufactured .products or her surplus in those countries where 
she can get the highest prices; on the other hand buys her commod- 
ities in countries where she can buy them the cheapest or to the best 
advantage. 

There are certain necessaries of life that even with all the diversified 
resources and climate of the United States we do not and can not pro- 
duce, and we are obliged to go to other countries for them. 

We are a nation of coffee and tea drinkers and consume a great 
quantity of these commodities, also far more sugar, molasses, hides, 
and many other articles, than we can produce; on the other hand, we 
produce in this coufntry meats, cereals, and breadstuff's, coal, minerals, 
and numerous manufactured articles that other countries can not or 
do not produce. Beciprocal arrangements should be made with all of 



476 RECIPROCITY STATEMENTS. 

these countries. The Government should, through her ministers, con- 
suls, or even through paid agents sent into foreign countries, endeavor 
to create a larger demand for American products in those countries. 
The Government should make the best commercial bargains for the 
exchange of commodities possible, so that the articles we are com- 
pelled to import may be paid for in articles we can export. It will be 
infinitely better to thus enlarge our production and create greater pros- 
perity in this country than to send our gold direct to Europe to be 
deposited to the credit of these countries to make purchases of their 
supplies that they should buy from us. 

The wealth of a nation is increased by the products that come from 
the soil and the mines by taking the raw material and adding to it the 
skill of human labor and making it more valuable. This being the 
source and the only source from which we gather our wealth, it is the 
duty of the legislative powers of this country to legislate in such a 
way as to develop and foster these industries above all others, for 
when the husbandmen find a ready market and obtain good prices for 
their wool, pork, beef, grain, hay, and products of the soil, and the 
mines produce minerals profitably, then the blast furnaces and rolling 
and steel mills, iron industries, and manufactories of all kinds will be 
working full time, labor will be in demand, and all lines of business 
will flourish and be prosperous. It is our duty to elevate the laborer. 
We are a nation of laborers, and it is the duty of the lawmaking 
power to bring about such legislation as will keep all of our laborers 
steadily employed, and throw around labor such protection as will 
shield it from idlers and nonproducing usurers. One of the great diffi- 
culties at the present time is there are too many idlers, too many gam- 
blers, and too many loafers who, through syndicates, trusts, and legis- 
lation favorable to them, are enabled to subsist upon the products of 
labor. We should favor all organizations that call men together by 
kindred sympathies, which lift them up and make them better. On 
account of stagnation and depressed conditions of business, there are 
to-day millions of idle workmen in this great country and many more 
millions that are sparsely fed and clothed, all of whom could find 
ready and profitable employment if the producers of this country could 
find ready and profitable markets for their products. The Government 
has each year aimed to encourage immigration to the West by throw- 
ing open to the people Indian lands and reservations. When the hus- 
bandmen are compelled to sell their product at what it actually costs 
to produce it, or at a loss, there is very little encouragement in the 
direction of developing new territory. 

After making the best bargain for the introduction of our goods into 
foreign countries in payment for the goods we are compelled to buy 
from those countries, it is the duty of the Government of the United 
States to improve our merchant marine so that the products that are 
produced in this country can be carried to foreign ports in home- built 
American bottoms and under the Stars and Stripes. Other nations have 
subsidized their merchant marines through the disguise of carrying the 
mails. France pays 16 cents per barrel bounty upon each barrel of 
flour that it sends into some of the foreign countries. Eussia, Germany, 
England, France, and all other nations legislate for the best interests 
of their people, and are taking care of themselves. It is the duty of 
Congress to look out for America, and give us such legislation as will 
be for the benefit of the greatest number of our people. 

The last Congress, if it had deliberately set about to cripple and 
destroy the industries of this country, could not have done it more 



RECIPROCITY STATEMENTS. 477 

effectually. They said that "reciprocity was a sham." and made a 
general crusade against industries, which has resulted in a great loss 
of trade. They even went so far as to try to destroy our navy and mer- 
chant marine by vetoing and opposing all appropriations to be used for 
this purpose. The Government has recently made some little show in 
attempting to improve our navy and merchant marine by building a 
few new vessels, but when we see the comparatively tew vessels that are 
sailing upon the ocean under the Stars and Stripes, carrying our product, 
as compared to those of foreign countries, the situation is appalling. 
It is a well-known fact that merchant marine vessels that have been, 
built by foreign countries have been constructed with their decks 
strengthened so that they can. at a very little expense and in a very short 
time, be changed from marine vessels to navy vessels, and it is high 
time that this Government was waking up to some of these facts and 
improving our merchant marine in a substantial way. 

i come from the birthplace of the Republican party. The first 
Republican convention that was ever held in the United States was 
held in the Town Street Methodist Church at Columbus, Ohio, July 13, 
L855, and was presided over by the Hon. John Sherman, now Senator 
from our State. The Republican party in all of its past history has 
been a progressive party, and the manufacturers, business men, labor- 
ing men. and farmers, who feel the depressed condition that now hangs 
over this once prosperous country, are looking to that party for relief, 
and it is through proper reciprocal treaties with other nations that they 
expect in some measure to obtain it. 

The Republican party, in her platform at Minneapolis, declared, 
among other things, that she was in favor of reciprocity, and the peo- 
ple of this country are looking to that party to redeem this as well as 
all other pledges which she made at that time. They will expect the 
legislative power that is now in control of the Government to enact 
such legislation as will open up reciprocal treaties and reestablish those 
treaties with all the foreign countries that had once entered into them 
with us, as well as with China, Japan, and many other nations. It has 
been said by some of the Members of the House that it will do no good 
to pass a reciprocal law in the House because it will not pass the Sen- 
ate, and others have said that if it passed the Senate it would be 
vetoed by the President. That is a very poor excuse for declining to 
pass a bill of that kind now. The Representatives of the House have 
been elected fresh from the people and in their platform in every Con- 
gressional district throughout the United States there was a pledge 
made to the people that one thing among others the Republican party 
would do would be to endeavor to restore the reciprocal relations 
between all other nations as far as possible; and the people took them 
at their word. They carried out their portion of the contract and they 
now come to you and ask you to fulfill yours. Look at the great change 
that has taken place in 'the personnel of the House between the Fifty- 
third and Fifty-fourth Congresses, and you ask why ? There is only 
one answer, one reply, as to why so many of the great statesmen who 
were so prominent in the last Congress have not been returned to this, 
and that is because they violated their obligations to the people and 
failed to keep their promises. Some of them became so muddled that 
they really forgot who the people were that sent them to Washington; 
they legislated so earnestly in the interests of Great Britain that Con- 
gress had no sooner adjourned than they took the first ocean steamers 
to report to their dukes, lords, and the Cobden Club to receive encomi- 
ums at their hands, to be wined and dined and feasted, and the result 



478 RECIPROCITY STATEMENTS. 

has been that they have now had two years — and will have many 
more — to look after their long-neglected business interests at home. 
The people have sent other representatives here in their stead, and the 
time has come for you to act, and the time is short. Even if it should 
be impossible to get such legislation through the Senate, or if it should 
not meet the approval of the President of the United States, it is your 
duty to show to the people your good faith in trying to bring about the 
legislation that the people want and believe is for the best interests of 
the masses, and then, but not till then, will you have done your whole 
duty. 

The last Eepublican Administration did a great deal to expand com- 
mercial relations between the United States and foreign countries ; they 
most effectually did away with the humbug of keeping American meats 
out of foreign ports on the subterfuge that they were diseased. 

There are 5,000,000 farmers in the United States, and with their 
families and laborers they make up nearly half of its population, and a 
large proportion of the remainder are manufacturers and laboring men. 
The interests of these classes are identical, and I want to say to you, 
gentlemen, that if the legislation of this country is derogatory to their 
interests and more favorable to others, it is only a question of time 
when they will get their heads together and confer upon these matters, 
and if the time ever does come and they agree upon a policy and put 
forth their combined efforts for what will be to the best interests of the 
masses instead of the classes, they will control the legislation of this 
country, either with or without the money power and syndicates of both 
Europe and America. One reason why this subject and many others 
are being so thoroughly discussed to-day is because of the unrest and 
dissatisfaction and disgust of the people all over the world in all lines 
of industries and in all avenues of life. There is something wrong, and 
it is my judgment and my firm belief that this question of reciprocity 
is only one cause, and that a very small part, for the evils and difficul- 
ties that exist; and I hope that some day, in the not far distant future, 
the bankers, manufacturers, business men, farmers, and wage workers 
of this country will be invited to Washington to appear before a com- 
mittee upon the most vital and all-important question before the world, 
and that is, the financial question; and, if I may be pardoned, I wish 
to say just one word in closing, that is, that that question must be taken 
up very speedily, and something done to stop the continuous squeezing 
and declining prices of commodities of all kinds, and the evil remedied 
that has caused all this great depression, stagnation, and strangulation ; 
relief and stability of prices must be established, which can only be 
done by protection, reciprocity, and the restoration of silver to its former 
position among the money metals of the world. 

The Eepublican party came into existence because of the oppression 
of the weak at the hands of the rich and powerful, and by its right and 
might swept slavery from the land. If now, untrue to its early princi- 
ples, it abandons the 60,000,000 of people suffering under bondage 
because of unjust legislation in the interest of the classes instead of the 
masses, its mission will be ended and its doom sealed. Another party 
Avill spring into existence, another Lincoln will arise, and the people 
will march under his banner to liberty and prosperity. 

Many of our great statesmen who occupy seats in the halls of Con- 
gress to-day will be no more, and the epitaphs on their tombstones will 
relate that they violated their pledges to the people, were unfaithful 
to the trust imposed in them, and that they bowed down to trusts and 
syndicates and worshiped the " golden calf " instead of practicing the 
"golden rule." 



RECIPROCITY STATEMENTS. 479 

The T. T. Hay dock Carriage Company, Cincinnati, Ohio. 

2. The manufacture of light vehicles. 

3. South America, South Africa, Central America, Turkey, Australia, 
Mexico. 

4. Yes; with South America, by mailing catalogues direct on a list 
of dealers we had, but with poor success; at least we could not see 
any direct results. 

5. We are not aware of any. 

G. Most of our export business being done through New Yor£ 
exporters, we have not kept track of the tariffs. 

7. This we also leave for the direct exporter to answer. 

8. Our export business has not exceeded $5,000 per annum any year. 

9. Prices somewhat less; material has also been reduced. 

10. None that we know of, as we don't believe that any other foreign 
market produces vehicles and gives as much for the money as Cincin- 
nati manufacturers. 

13. Yes. 



The Dash and Carriage Goods Company, Cincinnati, Ohio. 

2. Manufacturers of carriage trimmings. 

3. Have orders in small quantities from South Africa, Australia, 
New Zealand, and Venezuela. 

4. Yes ; principally by advertising in publications of New York and 
Boston commission houses, in the countries named, and other South 
American States ; success quite limited. 

5. We are not. Our information is too limited to give an intelligent 
answer. 

6. We do not know. 

7. We do not know. 

8. About 20 per cent more. 

9. Some of our products are higher, others lower, due, we think, more 
to local causes. 

10. We do not know. 

11. So far as our knowledge extends, we have in foreign countries no 
competition which we are not fully able to meet successfully. 

12. We can only state from observation, bearing upon our business 
indirectly only, that under the treaties of reciprocity the export trade 
of this country was decidedly increased and vitalized, our goods 
being represented mainly in the export of carriages in a finished state, 
rather than exported for use in carriage construction abroad. We 
think the repeal of these treaties materially curtailed the export trade 
in carriages. 

13. We do most emphatically. Protection with reciprocity will give 
a wonderful impetus and development to exports and extension of trade 
relations with foreign countries. 

We have stated that our volume of trade has increased the past six 
years, which can be fully accounted for by the domestic growth of the 
carriage trade in a country that progresses in spite of untoward con- 
ditions and whose necessities are naturally increasing. 



480 RECIPROCITY STATEMENTS. 

Sheffield Car Company, Three Rivers, Mieh. 

Answering your communication of March 4, which pressure of other 
matters has delayed, would say that the work of this company is con- 
fined to light cars; this covers cars for railway repair work, such as 
hand cars, push cars, and velocipede cars, also cars for mining and 
plantation work, lumbering operations, and contractors' cars for all sorts 
of construction work. We have a very large line of designs and operate 
the largest factory, we believe, in the world devoted exclusively to this 
line of business. 

We have received a good deal of business from the following foreign 
countries : Cuba, Austria, and Australia, with considerable number of 
orders from Mexico, the various States of Central and South America, 
and a number of the countries of Europe. We have made some effort 
to extend our foreign trade, issuing a catalogue in several different lan- 
guages and having a regular representative in London. Our foreign 
business has in consequence increased, we believe, nearly every year 
since the establishment of this company fifteen years ago. We do not 
know of any discrimination which would interfere with the extension 
of our business, and have not usually felt the restrictions of protective 
tariffs which exist in many of these countries. None of the countries 
produce goods in our particular line that are equal to ours in point of 
convenience, lightness, and durability, so that these articles are fre- 
quently shipped long distances. We presume the protective tariffs have 
sometimes reduced our trade with some of these countries, particularly 
some of the countries of Australia, Germany, and Canada, but we have 
not materially reduced our prices in consequence, the consumer there 
having to pay more for the goods if he bought them. 

We are not sufficiently familiar with the changes of tariffs in foreign 
countries to be able to give any intelligent expression of opinion in 
regard to this point, and are unable to say to what extent the removal 
of tariffs in force by foreign countries would extend our trade. As 
indicated above, it probably would be of some assistance. The volume 
of our general business is doubtless larger than that of six years ago; 
the foreign business certainly has increased and the domestic business 
has in the main held its own in spite of the general trade depression. 
There have, of course, been times when our business was much reduced, 
owing to general depression in trade, but our business has not suffered 
more than others in this particular. Selling prices are very considerably 
lower than they were six years ago. 

Foreign competitors have advantages over us in the way of direct 
transportation to South American ports, by reason of the fact that we 
have sometimes had to ship to England to reach these countries, and 
we have always felt that money could be expended in no more profitable 
way for the development of American trade than by the subsidizing of 
steamship lines for South and Central America. We suppose labor 
gives our foreign competitors advantages over us, but these are largely 
overcome by improved appliances and methods of manufacture. For 
these reasons we have always felt that we were able to compete on a 
fair basis with foreign manufacturers in our own line. 

We are not very familiar with the effect of the reciprocity treaties 
that were made some years ago and their repeal on business interests 
generally. We believe the only country in which we were affected 
directly was that of Cuba, but can give no very clear details. Our 
representatives there stated to us that when the reciprocity treaty with 
Cuba went into effect they would be able to secure more liberal orders, 



RECIPROCITY STATEMENTS. 481 

and greatly regretted the repeal, but just how much this action affected 
our business we are not in position to say. It is our impression that 
the reciprocity principle, if given a wider and more general application 
where this can be done, would greatly benefit our foreign trade. 

We have no doubt that the protective tariff principle is right so far 
as it affects the business interests of this or any other country, as 
goods which the country can make to advantage should certainly be 
produced at home. The amount of labor that is kept busy in manu- 
facturing certainly increases the consumption of agricultural products 
that are produced in any country, and there is no question but that 
the foundation of prosperity of any nation is dependent upon the pros- 
perity of the agricultural classes. After industries are well established 
tariff protection can doubtless be wisely reduced, if this reduction is 
gradual, so as not to greatly disturb existing conditions. 
H. Eep. 2263 31 



MISCELLANEOUS. 



OIBCULAB OF IKQUIBY TO MANUFACTUBEBS. 

Committee on Ways and Means, 

House of Bepresentatives, 
Washington, D. (7., March 4, 1896. 
Sir : In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Bepresentatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your earliest conven- 
ience, your views and suggestions, and such information as you are 
able to furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of manufacture. 

3. Amount of capital, number of persons employed, and value of 
annual product. 

4. Do you find your market at home or abroad, and, if both, in what 
proportion ? 

5. Do you sell direct to foreign dealers or through commission houses ? 

6. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries? 

7. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed ? 

8. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your lines of manufacture ? 

9. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal aid 
in the extension of your export trade? 

10. What is the output of your establishment compared with that of 
six years ago ? 

11. How does the present cost of production compare with that of 
six years ago; including wages, the cost of raw material, and transpor- 
tation rates by sea and land? 

12. How do present selling prices compare with those of six years 
ago? 

13. What competition do you meet with from foreign manufacturers, 
and in what markets? 

14. What advantages do your foreign competitors have over you 
in the cost of manufacture and in transportation charges to foreign 
markets? 

15. To what extent can you compete with foreign manufacturers in 
quality and prices? 

482 



RECIPROCITY STATEMENTS. 483 

16. Has the total product of the United States in your line of manu- 
facture increased or decreased during the last six years? 

17. What proportion of the total present and possible output in your 
lines of manufacture in the United States can be absorbed by the 
domestic market; and what would be your estimate of the natural 
surplus for export if all manufacturers in your lines were producing to 
their full capacity? (The purpose of this inquiry is to secure as accu- 
rate an estimate as possible of the necessity for new foreign markets 
to the manufacturers of the United States.) 

18. Was the general effect of the reciprocity treaties made in 18^0 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? 

19. What was the effect upon farm products particularly? 

(If your replies to inquiries 17 and 18 are based upon actual experi- 
ence, please give details as fully as possible.) 

20. Do you favor the application of the reciprocity principle to future 
tariff' legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

These inquiries have been forwarded to several hundred persons, 
firms, and corporations who are engaged in the manufacture of various 
lines of merchandise that enter into the export trade, and the replies 
are intended for publication with a report which the Committee on 
Ways and Means will make to the House of Representatives; but, if 
so desired, any information received will be regarded as confidential. 
All values should be expressed in United States gold, and all quantities 
in our weights and measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, Chairman, 



REPLIES. 
Etowah Iron Company, Cartersville, Ga. 

The property of our company lies in Bartow and Cherokee counties, 
north Georgia. It is largely a manganese property, but owing to 
unfavorable tariff legislation in the taking off of import duty, we have 
had to close our mines, and they are not now in operation. 

We are disposed to favor the reciprocity principle in future tariff 
legislation as suggested in your twentieth query. 



Miller Lock Company, Frankford, Philadelphia, Pa, 

2. Lock manufacturers. 

3. Capital, $100,000. Employees, 120. 

4. Home, 80 per cent; foreign, 20 per cent. 

5. Direct to Canada. Elsewhere through commission. 

6. By advertising, but this don't pay. 

10. Double. 

11. Labor 5 per cent less now. Material 18 per cent less now. 

12. One-third to one-half lower now. 



484 RECIPROCITY STATEMENTS. 

13. Cheaper labor. Better facilities for reaching into foreign markets. 
Cheaper transportation for export. 

14. For the most part, American locks are qnite different in design 
from those made in Europe and China. America does not attempt 
to copy the foreign patterns, but offers American patterns almost 
exclusively. 

This plan is tedious, but conservative. The other plan would be 
impracticable, owing to cheaper foreign materials, labor, money, trans- 
portation, etc. 

The American plan uses the foreign markets as an outlet for overpro- 
duction. If 25 per cent of American locks could be exported at lowest 
home prices, our factories could run full at fair profits. 

American prices of locks are low enough in cost to compete abroad. 
Our designs are such as admit of the application of duplicating processes 
of construction that are not appreciated by foreign manufacturers. 

We lack facilities for export. We should have parcels -post treaties 
with all uonmanufacturing countries. We should have lists of the deal- 
ers in all countries whose trade we covet. 

The Bureau of American Bepublics could not use the public funds to 
better purpose than by preparing and correcting for a period of, say, 10 
years lists of South American and other foreign traders, such as Brad- 
street and Dun issue for the United States and Canada. After our 
intercourse becomes active, private enterprise would relieve the bureau 
of continuing such labor. 

With available lists of classified trade and parcels-post facilities for 
showing up samples, the American producer could quickly introduce 
his products, and the traffic would follow through appropriate chan- 
nels — commission houses and shippers. 

We believe the above is the cheapest solution of the existing problem 
as to how to capture the trade of uonmanufacturing countries. 

17. The United States could soon supply markets of the whole West- 
ern Continent at prices as low as now prevail in South America. We 
lack facilities. Beciprocity would aid us much. 

18. Favorable. 

Bepeal killed the trade save where American goods had acquired 
special favor aided by a traffic that remained largely against the United 
States, e. g., Brazil. 

20. A reciprocity treaty, to aid us, must put us on a par with Europe. 
We want no reciprocity with Europe. Reciprocity should result in let- 
ting in free raw materials that do not compete with United States 
products and in letting out manufactured goods that are intended to 
displace European products. Such exchanges should be regulated by 
a commission or a bureau of the Treasury Department. 

Miller Lock Company, Philadelphia, Pa. 

We respectfully ask you to consider the following propositions, viz : 

(a) That a parcels-post agreement between nonmanufacturing coun- 
tries and the United States would inure to their mutual benefit. 

(b) That producers and merchants could then mail samples of a large 
variety of products, quote prices current, and thus effectually introduce 
their goods at small cost. 

(c) Aided by the Bureau of American Bepublics and by private 
enterprise, lists of traders in various lines would soon become available 
throughout Latin America. 

(d) Such an arrangement would be reciprocity itself. It would open 
the way for thousands of small producers to begin operations where 



RECIPROCITY STATEMENTS. 485 

little can be done under present conditions except by traveling sales- 
men, whose expenses utterly prevent their going except for a few of 
the largest interests. 



Tlie Peck- Williamson Heating and Ventilating Company, Cincinnati, Ohio. 

4. Not to any great extent. 

5. We are barred from competition by the duty, which on iron cast- 
ings is about 30 cents per hundred. Foreign manufacturers can there- 
fore underbid. 

7. Aid very much. 

8. Six times greater in the United States. 

9. About 12 per cent less. 

10. Advantage of duty only. We could stand the extra freight. 

11. See No. 10. 

12. Have no actual experience. 

13. Yes. 

Our information is that we could compete in price and greatly extend 
our trade in foreign countries were it not for the duty. 

We do not believe the removal of the duty would be harmful to our 
own workmen on account of importation of a foreign product, for we 
are now manufacturing our special lines enough cheaper than the same 
goods could be manufactured abroad to enable us to compete with 
them on an equal footing after paying the freight. 



Tlie Werner Company, Chicago, III., and Akron, Ohio. 

2. Publishers and manufacturers, lithographers, electrotypers, etc. 

3. Nearly all foreign countries except Eussia. In Eussia the duties 
and restrictions on our publications are prohibitory, practically, and it 
is almost impossible to take the plates into Russia and do the manu- 
facturing there, for the same reasons. 

4. We have extended our foreign trade as rapidly as possible, but 
have found it more to our advantage to manufacture our books that we 
sell in foreign countries either in Germany or in England. There is 
practically free trade on books with all countries, excepting the United 
States, Canada, Eussia, and France. 

5. We know of no special discrimination in any country outside of 
Eussia. 

6. We know of no recent changes in tariffs referring to our line of 
goods. 

7. We would be able to do a very large business in Eussia and Can- 
ada if it were not for the customs duties. In Eussia they have other 
restrictions, such as governmental inspection, etc., which prevent our 
doing business in that country fully as much as the duties imposed. 

8. We have been doing business in foreign countries for the past 
three years only. 

9. How do present selling prices compare with those of six years ago ? 
In some lines there are no changes and in others a reduction of 10 to 
25 per cent. 

10. What advantages do your foreign competitors have over you in 
the cost of merchandise and in transportation charges to foreign mar- 



486 RECIPROCITY STATEMENTS. 

kets? On account of the customs duties in this country, entering into 
everything used in the manufacture of a book, and as it is stated that 
this tariff increases the wages paid for labor, German and English 
manufacturers have a large advantage over us. as they purchase their 
raw materials for less and their labor is cheaper. We are not prepared 
to state whether or not the tariff compels us to pay higher wages than 
are paid over there, but the fact remains that they obtain their labor 
for much less than we do. and as their raw materials cost them much 
less, labor entering into these also, they are able to manufacture the 
same articles considerably cheaper. England also has a large advan- 
tage over us in transportation charges to Australia. Africa. India, in 
fact to all European points, and to many South American points. 

11. We believe the quality of our output is superior to most of the 
foreign, but the cost of production in this country is greater on any 
given article. 

12. We believe the reciprocity treaties of 1S90 were beneficial, but 
we had no active experience under them. 

13. We heartily favor reciprocity as a principle. 



Be Butts & Daggett, Boston, Mass. 

We favor the enactment of a general law authorizing the President 
to negotiate reciprocity treaties with European and American nations 
so far as possible. 

Under former reciprocity treaties the fish business was in a most 
prosperous condition. Reciprocity would very much increase the export 
trade in fish. 



Kurzman Bros., New York. 

We. in our export trade to West Indies and South America, find our- 
selves unable to increase our trade in many countries, such as Brazil, 
for example, owing to the great prejudice against American butter 
existing in those countries. 

Eor quite a number of years oleomargarine was exported from the 
United States under the name and guise of United States butter. This 
made the South American merchant and consumer suspicious that even 
the well-known United States brands of butter were also adulterated. 

Happily, since January 1, 1896, the United States Treasury Depart- 
ment compels all oleo to be branded as such. 

But the damage to the reputation and prestige of American butter 
has been done, and we have spent thousands of dollars sending our 
pure butter to South American countries, trying to supplant the Euro- 
pean butter so largely used there. 

Our finest creamery butter, even though acknowledged to be good by 
the merchants, is unsalable except at a heavy sacrifice, just because it 
is American butter. 

By having "reciprocity" with these South American countries we 
would be in a better position to successfully supplant the European 
butter. 

Beciprocity for five years would open all of the markets on the West- 
ern Hemisphere to United States butter. 



RECIPROCITY STATEMENTS. 487 

International Food Company, Minneapolis, Minn. 

Nearly all our trade is home trade. We have shipped some goods 
into Canada, but the 25 per cent duty is almost prohibitory. 

Our business in 1895 doubled over 1893, and for the three months of 
189(3 it has shown an extraordinary increase over the same months 
of 1895. 

The cost of putting up our goods is about the same as it was six 
years ago. We use a large amount of roots and herbs, which are 
imported from France and Switzerland, and a reduction in the duty oa 
these articles would, of course, be beneficial to our business. 

England and Canada put up a good deal of stock food, which is our 
principal product, but competition from foreign manufacturers in our 
line is very slight in this country. Whether this is on account of the 
duty they would have to pay or for other reasons we are unable to 
state. We do not think foreign manufacturers have any advantage 
over us in the cost of manufacturing stock food, etc. 

In regard to total product in the United States of goods manufac- 
tured in our line as compared with the past, will say we are sure it has 
more than doubled, although we can not furnish statistics to prove our 
statement. 

We can not give any definite figures in regard to the possible output 
of our line of goods, nor of the proportion that w 7 ill be absorbed by the 
domestic market, but our impression is that manufacturers of our line 
in the United States could supply the world if they were called on to 
do so. 

The reciprocity treaties of 1890 were favorable to the export trade of 
our goods. We believe the repeal of the reciprocity treaties had a cer- 
tain amount of effect in lowering the prices of farm products. 

We most certainly favor the application of reciprocity principles to 
future legislation, and believe it would increase the general prosperity 
of this country. While it would enable us to increase the volume of 
our business, we realize that the effect would be very much greater in 
such lines as flour, etc. 

We furnish employment to about 60 people. The present volume of 
our business will average about 6300,000 per year, and is growing 
rapidly. 

We realize that our answers are not as definite as they should be, but 
they are the best w r e are able to give on account of lack of definite 
statistics. 



Wm. Becker Leather Company, Milwaukee, Wis. 

2. Manufacturers of leather. 

3. Eight hundred and seventy-five thousand dollars; 400 persons 
employed. 

4. Market at home as well as abroad. Shipments abroad about one- 
sixth of annual product. 

5. We sell direct to foreign dealers and also to commission houses. 

G. We have tried to extend our foreign trade through correspondence, 
with fair success, in England, France, and Germany. 

7. We are not aware of any discrimination or obstacles in the laws 
of any foreign country to prevent the extending of our trade. 

8. We do not know of any changes in the tariffs of foreign countries 
relating to our line of manufacture. 



488 RECIPROCITY STATEMENTS. 

9. There is no duty imposed by England upon our product. In 
France and Germany the removal of a moderate duty paid now might 
increase our exports to those countries. 

10. Our output at present compared with that of six years ago is 
about 200 per cent larger, the plant having been rebuilt and the capital 
doubled. 

11. The present cost of production compared with that of six years 
ago in regard to wages is about 20 per cent lower. Transportation 
rates by land and sea are about the same. The cost of raw material 
to day is 20 per cent higher than six years ago. 

12. The selling prices compared with those of six years ago are about 
20 per cent lower. 

13. The competition we meet with from foreign manufacturers is in 
foreign markets only. With the exception of patent leathers there is 
but little foreign leather sold here. 

14. The main advantage foreign manufacturers have over us in the 
cost of manufacture lies in cheaper wages. 

15. We can successfully compete with foreign manufacturers both in 
regard to quality and prices. 

16. The total product of the United States in our line of manufac- 
ture has greatly increased during the last six years. 

17. About two-thirds of the total present output in our line of manu- 
facture can be absorbed by the domestic market. Were all the 
manufacturers in our line working their full capacity we think the pro- 
portion would be about three-fourths. 

18. We notice no effect of the reciprocity treaties made in 1890, nor 
did their repeal make any apparent difference. 

20. We favor the application of reciprocity principles to future tariff 
legislation, and the enactment of a general law authorizing the Presi- 
dent to negotiate reciprocity treaties for both European and American 
nations, so far as possible. 



The National Cash Register Company, Dayton, Ohio. 

2. Manufacturers of cash registers. 

3. Canada, England, Norway, Sweden, Denmark, Holland, Belgium, 
France, Austria, Italy, Germany, Eussia, Australia. 

4. We have extended our foreign trade to these countries by means 
of agents acquired in those countries and educated by men sent out 
from this country for that purpose. Our success has been very great, 
especially in England, Holland, and Germany. They have taken our 
machines quite liberally, to the extent of $20,000 per month. 

5. There are no obstacles in the customs regulations of any foreign 
country, except Canada, that restrict or prevent the extension of our 
trade. In Canada we are practically prevented from extending our 
business beyond a limited extent because the duty is 35 per cent 
against us. This, added to the price of our machines, makes them so 
expensive that the Canadian people do not take them as rapidly as in 
countries where the tariff is much less. If we could have reciprocity 
with this country I am sure that trade of all kinds could be extended, 
as they do not manufacture so well or cheaply, or in variety, as we do 
in the United States. In regard to the other countries, they have a 
natural tendency not to buy American goods, for the reason that they 
come into competition in countries where the value of our goods shows 



RECIPROCITY STATEMENTS. 489 

to an advantage over theirs; therefore, when we go to their home 
markets to arrange for commercial sales, we find a natural national 
aversion to buying American goods. We think if reciprocity were 
introduced into these countries, it would create a much better feeling 
between the commercial elements of society. 

G. There have been no changes in the tariff regulations of foreign 
countries so far as they relate to our line of exports. They have not 
changed in this class in the last six years. 

7. We do not think the removal or reduction of customs duties 
imposed by foreign nations, except Canada, upon the merchandise which 
we manufacture would make any material difference in the sales, or aid 
us in the extension of our export trade, although we would get the same 
price per machine as we do now, but the profit would be that much 
larger. 

8. The volume of business compared with that of six years ago is 
about quadruple what it was then. 

9. The selling prices of the machines are maintained the same as they 
were six years ago, but they are being much better made and are vastly 
superior machines in every way, which in reality lowers the price. 

10. The advantages of our foreign competitors in cost of merchandise 
and transportation charges to foreign markets are none. In some 
countries, of course, they have an advantage in cheap labor and in 
transportation. The same facts are maintained in relation to their sur- 
rounding neighbors. Ours being a specialty, we do not compete with 
them materially in foreign markets. 

11. We are the sole manufacturers in our line in the world and do not 
compete with foreign merchants, except possibly in Germany, where they 
reduce our prices about half, but do not manufacture as fine a machine. 

12. The general effect of the reciprocity treaties made iu 1890 was 
favorable to this country to a degree which is hard to estimate. The 
whole country felt its thrill to the center. Manufactories were running 
full, money was being turned into the country in a stream, and the 
trade was in a flourishing condition. Immediately upon this unfavor- 
able legislation against reciprocity, the effect was magical; factories 
which were running full were obliged to close partly down, discharge 
some of their hands, and reduce their output to an amount which this 
country alone could take. We think you will find that is the chief 
secret in the shorter hours the factory is obliged to run at the present 
time. We can reach this trade with all our manufactories if reciproc- 
ity is again revived, as it produces a friendly feeling in all foreign 
nations to us, and that is the chief factor in gaining trade. No matter 
how good you may manufacture your goods or how reliable the material 
which goes into them, if you have not a friendly feeling in the markets 
of the world you will be obliged to content yourself with a small por- 
tion of the trade. 

13. We most emphatically favor the application of the reciprocity 
principle for future tariff legislation and the enactment of a general 
law authorizing the President to negotiate reciprocity treaties with 
both European and American nations so far as possible. We think 
this will produce a friendly feeling to the United States, and not one of 
antagonism, as now exists in the markets of the world. 

We wish to thank you for the privilege of replying to your circular, 
and have no doubt that all of the replies which you receive will serve 
as a guide to enlighten the way to revive business in this country. But 
of all things, the quickest is to raise the tariff on articles which we can 
manufacture here, thereby giving our manufacturers something to do. 



490 RECIPROCITY STATEMENTS. 

They can send their surplus abroad at a very small profit, and in that 
way reduce the cost of manufacture upon the whole. 

We think the Wilson tariff bill did more to injure this country the 
past three years than any one enactment of Congress could have pos- 
sibly done. It has caused almost stagnation of business in certain 
lines. Manufacturers who w T ere accustomed to manufacture regular 
lines of goods have gone into specialties, such as bicycles and smaller 
articles of that nature. 



Boultorij Bliss & Dallett, New York, 

2. Lines of trade, general merchants and managers of the Eed D Line 
of American steamships. 

3. Our principal trade is with the Eepublic of Venezuela. 

4. Our business was established over fifty years ago, and since that 
time our predecessors and ourselves have done everything in our power 
to develop the trade between the two countries. At first we employed 
one or two small schooners to carry our goods; subsequently we 
employed brigs and barks, not only to carry our own goods, but also 
general freight. In the year 1879 we chartered two small German 
steamers. A few years later we substituted American steamers of 
about 1,600 tons gross. These in turn have been replaced by first-class 
American passenger steamers of about 2,600 tons gross, and we have 
recently added a direct line to Maracaibo. The success of our efforts 
in extending the trade is shown by the increase in the number and size 
of vessels dispatched; also by the fact that while the total average 
exports from the United States to La Guayra, Puerto Oabello, and 
Maracaibo for the years 1880 to 1885 was 35,447 tons, the average for 
the years 1891 to 1895 was 74,989 tons, and also by the fact that Vene- 
zuela imports more from the United States than she does from any other 
country. 

5. As far as we are aware there are no discriminations or obstacles 
in the necessary laws or customs regulations of Venezuela that restrict 
or prevent, to any considerable extent, the development of the trade 
between the two countries. 

6. No changes have recently occurred in the tariff of Venezuela. 

7. It is difficult to say to what extent the removal of duties imposed 
by Venezuela would aid in the extension of the export trade from this 
country. Such a thing, however, is not possible, as explained farther 
on. 

8. Our trade as merchants has not increased very much in the last 
six years, as we have, during that time, devoted most of our attention 
to the development of the carrying trade between the two countries. 

9. As a rule, the cost of provisions, etc., is lower than it was six years 
ago. The same is true as to the rates of freight. 

10. We export principally flour, lard, kerosene, etc., all of which are 
cheaper here than in any other country with which Venezuela has steam 
communication. Kates of freight are also lower from this country. 

11. Is answered above. 

12. As is well known, Venezuela failed to make any reciprocity treaty 
with the United States, and a duty was imposed on her coffee, hides, 
etc. This had the effect of shutting out most of her coffee from this 
market, and the trade is only now beginning to recover from the effects 
of having this coffee diverted to Europe. What effect it had on exports 
is difficult to say. In 1892 they fell off considerably, while in the fol- 
lowing year they were larger than usual. 



RECIPROCITY STATEMENTS. 491 

13. We do not favor the application of tlie reciprocity principle to 
future tariff legislation. Tbe South American Republics are mainly 
dependent for their revenues on what they can collect through their 
custom-houses, and most of them can not afford to make any consider- 
able reduction in their incomes. As already shown, the trade between 
the United States and Venezuela has been built up slowly but surely 
by the energy of our merchants and by the maintenance of a regular 
line of steamers. A necessary part of the business is the importation 
and transportation of coffee, hides and skins, etc. Our merchants have 
invested large sums of money in the trade and we have built American' 
steamships especially adapted to it, and it would be an undeserved 
hardship to us all if the United States was again to impose a discrim- 
inating duty on these goods when imported from Venezuela. From all 
that we can learn, the only advantage the United States gained by the 
reciprocity treaties was from the provision admitting sugar free of duty. 
We therefore respectfully suggest that if the principle is applied to 
future tariff legislation, it be restricted to sugar, and not be extended to 
other articles which have been admitted free of duty for so many 
years. 



Dole Brothers Company, Boston, Mass. 

2. Dealers in hops and malt. 

3. Great Britain, Canada, Newfoundland, and Australia. 

4. We obtained a copy of Bulletin of Bureau of American Republics 
and addressed a number of firms whose names are given therein who 
are resident in West Indies and South America, with a view to open up 
business if possible in those sections, and have received replies to some 
of our letters, but it is hardly time for us to give an intelligent opinion 
as to whether a trade of any magnitude can be built up in these places 
in our class of goods, as we do not know whether either hops or malt 
are consumed there or not. 

5. We have found that the specific duty of 6 cents a pound now levied 
on hops imported into Canada is a barrier to our export busiuess to that 
country, for at present prices this is equal to a duty of 100 per cent, 
and the shipments of hops from the United States to Canada is much 
less than was the case heretofore. Canada cau not compete with the 
United States in hop culture, and we think that a duty more favorable 
to American hops would increase our exports materially, as we would 
supply more hops to the exclusion of England. 

6. Nothing that we know of. 

7. Removal of duty on American hops imported into Canada would 
increase our export trade to a very great degree. 

8. Volume is fully as large. 

9. Prices are now about one-fifth, and never were so low before in the 
history of the business. 

10. Really no advantage in either cost of merchandise or in transpor- 
tation, as prices of American hops are lower than foreign growths. 

11. We think that American hops can compete in price and quality 
with those grown in any country of the world, but as the chief foreign 
market is England, where a great many hops are also grown, a large 
increase in exports could only avail at a time of failure of the hop crop 
in that country and when a surplus stock was held in this country. 

12. Do not remember that hops were ever included in any reciprocity 
treaty. 



492 RECIPROCITY STATEMENTS. 

13. The application of the reciprocity principle to future tariff legis- 
lation and the enactment of a general law authorizing the President to 
negotiate reciprocity treaties with both European and American nations 
would meet with our hearty approval, and we believe this a sure means 
of extending our foreign trade. 



J. P. Crane & Co., Wobum, Mass. 



2. Tanners and curriers of grain and split leather. 

3. England, Germany, Austria, France, Eussia, Italy, Turkey, Nor- 
way, Sweden, Switzerland, Australia, and wherever leather is used. 

4. We at all times use our best endeavors to extend our foreign trade 
where we find satisfactory credits. Our first exportation began nearly 
ten years ago, or in 1887. The sale the first year was about $6,000, but 
increased till 1895, when one party took about $100,000 in value, and 
others had increased their purchases largely. As we have the reputa- 
tion of producing the best leather of the kind in the world, it is of the 
highest cost, for which reason its use is somewhat restricted. We 
invite the foreign buyers to our works that they may inspect the manner 
in which we treat our product, by liberal correspondence and free use 
of the cables; also, we have been afforded much assistance by the 
"reports of the United States consuls." 

Several of our consuls are an honor to the service, and if unaffected 
by political changes, as they should be, will be of increasing value in 
opening up desirable markets. 

Our first sales were in England, afterwards extended to the markets 
named. We would advise our manufacturers to closely study the for- 
eign market before engaging in introducing their goods. Many have 
not used due care, and failing of success have withdrawn therefrom. 
Before entering the business we studied their needs, and the results are 
very satisfactory. 

5. Our greatest obstacle in extending the use of our make in France, 
Austria, Canada, and a few other countries has been the somewhat 
restrictive duties upon finished leather. We made several trials in 
Canada, and without success. There area large number engaged in 
our business in Quebec, but the product is very inferior. 

The only remedy which we can conceive of good results ensuing must 
be the free exchange of the products of the two countries. Though 
they have lower cost tanning material and with much lower wages 
paid the workmen, we have no fear of competition there. 

6. In so far as we have knowledge no change has occurred that has 
affected our business. 

7. Our reply is embodied in that to the fifth query. 

8. The year 1896 is not comparable with that of 1890 because of the 
peculiar condition in which the leather manufacturer has been placed, 
especially during the past seven months. During the early part of 1895 
and till September values increased rapidly, then receded in like ratio 
to the present time, while no one is competent to prognosticate the future. 
The foreign market is affected in like degree, as the principal foreign 
buyers have their representatives here and promptly advise by cable 
their principals. 

We Go not consider it would be of any material benefit for our manu- 
facturers to establish branch houses in European markets. The low 
r&tes of interest pertaining there enables the houses engaged in import- 



RECIPROCITY STATEMENTS. 493 

ing American leather to distribute same at a very moderate compensa- 
tion, and such as would not induce us to enter the field. 

If our manufacturers, not only of leather but. in many other lines of 
production, will keep their goods of uniform excellence, delivering at all 
times, as we have made it a rule to do, goods equal to sample, we fully 
believe they will increase their sales and realize a satisfactory result. . 

We do not consider Europe as a dumping ground for undesirable 
goods at home, but that the business so conducted will be unsteady and 
often a failure, while those engaged in endeavors to introduce goods of 
merit are often doubtfully received. Honest dealings, with close attend 
tion to the demands of the markets abroad, will, we fully believe, insure 
success in a great majority of cases and a stable demand be secured. 

In many localities the people are capricious, and some articles of merit 
(so considered here) will not meet with ready acceptance. The majority 
of continental buyers are governed by special marks, and when found 
true to quality and selection a permanent consumption is insured. 

9. Values are very near those of 1890, while we pay the same wages 
as then. 

10. Any advantage possessed by the foreign producer is balanced by 
others we have. Transportation charges vary somewhat, being gov- 
erned by supply and demand, but at present we have exceptionally low 
freight rates accorded us and can deliver in Liverpool at less cost than 
from Boston to Isew York. We can deliver in London at very much 
less cost than the freight to that city from Liverpool. We only regret 
that we can not ship in American vessels instead of contributing on 
every shipment to a foreign shipowner the money that should be dis- 
tributed among the American owner, builder, crew, and repairer of the 
vessel, and open a new source of employment in our overcrowded labor 
market. 

11. In quality we have no competitor there, while the price is gov- 
erned by quality as a rule. We will state, however, in explanation of 
an enigma to too large a portion of our people, that we sell our goods 
at the highest price we obtain in the markets in which the lowest wages 
is paid in our special industry. Wherever we sell the wages does not 
affect us in the least degree. The " labor cost" establishes the exchange 
of commodities, and our product costs us less by a liberal percentage 
than that of like goods anywhere in the world, and we pay our workmen 
the highest wages known and furnish them constant employment. 
"Good pay for good work will stand against the world, and good 
wages wisely spent is the best guaranty of prosperous and continuous 
employment." 

12. To this we feel incompetent to reply as we would desire. Our 
line of goods is not such as would be used in quantities by our South 
American neighbors, probably for a long time in the future, and we 
have not yet made persistent effort to introduce them. From a brief 
study of the matter, we concluded the difference of time in settlement 
of accounts, as they require longer time than in England or on the 
Continent, was not desirable, and in connection with the moderate 
amounts we could place there we ceased for the present to give atten- 
tion there. Leather of light material, like kid, goat, and sheepskin, are 
consumed there, with many kinds of textile goods and hardware. We 
trust those engaged in the manufacture of these will sustain schools 
to educate the youth of this country to the needs of South America; 
and we believe it will prove a fine field for many of our young men to 
enter upon when they acquire the knowledge. 

13. We are in favor of the application and the enactment. We 



494 RECIPROCITY STATEMENTS. 

also believe it is for mutual interests. Eeciprocity should first be negoti- 
ated with our nearest neighbors, Canada and Mexico, on broad lines, 
and with Europe as early as possible. 

Though not disposed to intrude our personal ideas as to the virtue or 
error of restrictive tariff in our succeeding object lesson, we trust it 
will be accepted as an endeavor to illustrate an important fact. 

The claim made at time of the enactment of the McKinley tariff bill 
(so termed) was: "No one could suffer in paying duties when the raw 
material was imported, as when finished and exported the duty was 
repaid the importer, less a small per cent retained." This drawback 
feature was much dwelt upon by Senator Aldrich (the actual compiler 
of that bill) and others interested in its adoption, as a sufficient reason 
no one should oppose. 

In August, 1890, we imported from England some partially tanned 
hides, and when finished into grain leather one of our foreign custom- 
ers would take it. Our first payment of duties, 10 per cent, was 
increased about three months later (at which time the goods ordina- 
rily would have been shipped by us) to 15 per cent. When we did ship 
them, we received the drawback. 

We did not expect to produce leather from these hides at a less cost 
than from domestic hides, but to produce a new line of goods, which, if at 
as low cost, would furnish increased employment that would fill our works 
to its full capacity, and the increase alone would support some 200 per- 
sons. We will not here relate other details we have at hand, but the 
uncertainty as to amount of duties for which we were liable (an item of 
large amount in a year's business, and the due loss of interest thereby), 
the required routine of ked tape, together with being unable to make 
prompt shipment upon cable orders, as we must await the appearance 
of a customs weigher at our works before packing, caused us to relin- 
quish the business, as it is at best conducted on close margins of profit. 

There was no profit derived from the initial effort, and we feared as 
much loss as gain, if continued. France advanced her rate of duties 
upon finished leather in consequence of that bill, and we can not mar- 
ket there above one-tenth the amount we otherwise could, while the 
same applies to Austria as well. 

With free hides, exportation of finished leather has increased, and 
we note that the increase from Boston alone from January 1, of the cur- 
rent year, to March 18, was in value $803,000, as compared with same 
time in 1895. 

One of the greater benefits to be derived through reciprocity with 
Canada, if included in the treaty, is the supply of lumber, diminishing 
to that extent the cutting of our forests, thereby saving this section of 
the country the heavy losses caused by the increasing size of the freshets 
or overflows in late winter and early spring months. We are reducing 
our forests too rapidly, and we should leave a better heritage to those 
who follow. 

The proposed commercial treaty in 1882 with Mexico extended in suc- 
cessive years to May, 1887, in which we were represented by Gen. U. S. 
Grant and William H. Trescot, esq., appears as liberal concession by both 
Governments as could be passed. It is to be regretted it was not con- 
summated there, but 12 of the 13 members of the Ways and Means 
Committee voted adversely. Of the 28 articles to be admitted here free, 
coffee, eggs, esparte, and grasses for manufacturing paper; goatskins, 
raw hides, sheepskins (wool removed), logwood and like material for 
dyeing; india rubber, quicksilver, wood, and timber unmanufactured 
were the principal articles, but all were raw material. 



RECIPROCITY STATEMENTS. 495 

There were 73 articles to be admitted to Mexico free, the principal 
being iron beams and rafters, stoves, steel beams for mines, road car- 
riages, all kinds; clocks, pumps, all kinds; iron and steel rails, loco- 
motives, leather and rubber belting, petroleum, crude or refined; 
industrial, agricultural, and mining machinery; steam engines, sewing- 
machines, tools of iron, steel, or wood; barbed wire, and water pipes. 
With a privilege of exchanging so many classes of goods upon which, 
much labor had been expended for raw material, of which we require 
large quantities, it is a mystery why the committee were so strongly 
adverse in their decision. / 

Mexico, after internal troubles, now stable in her government, at one 
time in serious financial difficulty, in 1877 began to improve, and in 
1891 and 1892 was able to obtain an income above expenses, reducing 
her debt of $150,000,000 one-half in fourteen years. We seem short- 
sighted in pursuing a policy estranging the two countries, while she is 
in need of immense supplies we should provide her, while the great 
development now taking place there is in progress. 

European merchants and manufacturers accede to their exactions, 
such as are not known here; but ours should do the same and have a 
full share of the trade of above 12,000,000 people, of whom a large 
portion are ready to accept our wares, and in great variety. 

In the Argentine Eepublic immense forests exist from which tannic 
acid can be procured. The bark of the red cibil yields 15J per cent, 
or more than our oak ; the white quebracho wood, 12 per cent, and its 
leaves 27 J per cent ; the shells of the espinillo fruit yields 33.2 of the 
purest quality and almost colorless. 

Tannic acid is most readily obtained from the cibil and quebracho 
which are found in immense forests along the banks of the Upper 
Parana River, handy to ocean vessels of ordinary draft. Germany 
has entered into the procurement of her acid there, and increasing 
largely in her shipments therefrom. That country (Argentine Repub- 
lic) imports the finest varieties of French and English leather, and 
makes it into boots and shoes, harness, saddles, trunks, etc. She im- 
ported in 1884 from Belgium in boots and shoes the value of $194,000, 
France $123,000, England $101,000, and we sold them $14,576. The 
two former supplied shoes attractive in appearance, some hand-made, 
but the poor work gave them little endurance. England supplied shoes 
with heavy uppers and thick broad soles, a much better shoe for service. 

The above showing is not commendable to the manufacturers of this 
country. It is a well-known fact that our manufacturers of almost all 
kinds of wares are inclined to prescribe the goods our South American 
neighbors shall take to certain ideas they have, and are careless in the 
packing and delivery. While the European has found the field so good 
a one to work in and is using his utmost endeavors to increase his dis- 
tribution there, our more progressive merchants and manufacturers 
seem loath to enter into more intimate relations, even where we can x^ro- 
duce at less cost than those now supplying those markets, and the 
smaller of our concerns can not afford to build up a trade there except 
by a combination of interests. 

Though our importations from Europe exceed our exportations there 
at present, new lines of goods are constantly being added to those we 
formerly shipped there, and we believe many others can be sold if the 
business is intelligently conducted. 

Though our population is rapidly increasing and should demand a 
greatly increasing amount of commodities, yet the market is often con- 
gested and requires an outlet to other countries ; but if we place barriers 



496 RECIPROCITY STATEMENTS. 

at our customs that exclude proper exchanges we are obliged to sacri- 
fice in prices in entering those markets we need to absorb our surplus. 

The oft-recurring changes in employment caused by improved 
machines and methods adopted in nearly all our manufacturing indus- 
tries cause many to remain idle until other avenues are opened to them, 
but with reciprocity liberally extended it should insure a greater dis- 
tribution for our wares and a more constant employment of our artisans 
in producing many wares we are able to compete in and exchange with 
them. 

We beg your indulgence for intruding at so great length, but greatly 
interested as we are in promoting this industry, we accepted your 
invitation to furnish such information as we could. 



Standard Oil Company of New York, Neio York, JV. Y. 

In response to your circular of date March 4, we beg respectfully to 
say that our business is that of producing, refining, and dealing in 
petroleum and its products, both at home and abroad, and that as 
regards foreign countries we are dealing more or less with all countries 
using illuminating oils. There are some of the questions contained in 
your circular which we find difficult to answer specifically, and beg per- 
mission therefore to answer in this general way. Our chief competition 
abroad is with Eussian oil. This oil, though not producing so large a 
percentage of refined oil, nor making so good an illuminant as Ameri- 
can oil, is nevertheless produced in such large quantities — a single well 
sometimes producing daily nearly as much as our whole daily produc- 
tion — and at so low a cost that the refined product can be put on the 
markets of the world at a much lower cost than American oil. To-day 
Pennsylvania crude is selling at $1.34 per barrel and Russian crude at 
30.33 cents per barrel. In addition to this, the proximity of Eussia to 
European consumers, as well as to the great markets of the East — 
India, Java, China, and Japan — enables them to secure transportation 
at a much lower cost than from the United States. 

Now, whether reciprocity would aid us in more thoroughly competing 
with this product, it is not easy to answer. We are not aware that 
reciprocity has materially affected the consumption of American oil one 
way or another. There are some countries where, because of the most- 
favored-nations clause, we could receive no benefit, as the countries 
having the clause would be put on same basis as America. The general 
increased use of refined petroleum as an illuminant has enabled us 
largely to increase our export business as a whole during the period 
referred to in your circular, but at the same time our trade with the 
countries in the far East, to which we have referred, has been materially 
reduced by Eussian competition. We may note that while the average 
price of crude oil in 1895 was much higher than in 1889, yet the aver- 
age price of refined oil was about the same in both years, showing that 
the consumer has had the benefit of the economies. 

In treating this question it must be kept in mind that many countries 
impose a large duty on petroleum as a mere matter of revenue, which 
would not be helped by reciprocity, though a reduction of duty would 
undoubtedly stimulate consumption. 

In conclusion, we would say that we have used all efforts to extend 
the export business, reducing cost, opening direct communication with 
foreign countries, and in all ways aiming to increase the general con- 
sumption of petroleum and its products. 



RECIPROCITY STATEMENTS. 497 

W. H. Parsons & Co., New York, N. Y. 

2. We are manufacturers of news paper and dealers in other grades. 

3. We are doing business with Australia, and, to a smaller extent, 
with South America and with Great Britain. 

4. We have made direct effort to extend our trade with Great Brit- 
ain by having had our own representative there and by giving personal 
attention to the subject. In South America we have endeavored to 
extend our trade by correspondence and by dealing with established 
commission houses in this city, and are meeting with some success in* 
both directions. 

5. We are not able to express an opinion on this subject. 

6. The same. 

7. The removal or reduction of customs duties by South American 
countries would be a material help in the extension of our export trade. 

8. Our export trade has increased during the past six years. 

9. Prices are lower than six years ago. 

10. Our chief competitors are German and other continental manu- 
facturers; we believe they have advantages in the cost of transporta- 
tion. 

11. We believe we are able to compete with foreign merchants, in 
both quality and price of the lower grades of paper; by which we mean 
papers made entirely or to a large extent from wood pulps, comprising 
news papers and the lower grades of book and writing papers. 

12. 13. In reply to these questions, we beg to say that our export 
trade has continued to grow notwithstanding the repeal of the reciproc- 
ity treaties, but, in the absence of anything better, we are in sympathy 
with the reestablishment of such treaties with the South American 
nations. 



The B. F. Goodrich Company, Alcron, Ohio. 

2. Manufacturers of rubber goods. 

3. England and Chile. 

4. Have made no special efforts. Sent a representative to London 
last year. 

5. No. 

6. None. 

7. Do not think it would make any difference. 

8. Our foreign business is very small, and has all been established 
within six years. 

9. Lower by from 15 to 25 per cent for such goods as we export. 

10. We believe the advantages are all in our favor for the goods we 
manufacture for export. They consist almost entirely of what are known 
as stationers' and druggists' sundries. 

11. They can not compete with us for goods of the same quality. 

12. Onr experience has been too limited to reply to this question 
intelligently. 

13. Yes. 



J. A. Dennis, export agent of the Trenton Rubber Company. 

2. Mechanical rubber goods. 

3. Central and South America, Mexico, West Indies, Australia, New 
Zealand, South Africa, Japan, China, and the Hawaiian Islands. 

H. Rep. 22G3 32 



498 RECIPROCITY STATEMENTS. 

4. I have, by correspondence, distribution of samples, and by sales- 
men, increased my sales about 100 per cent in six years, mostly in Amer- 
ican countries and Japan. 

5. By the renewal of reciprocity treaties many obstacles may be 
removed that now exist to the detriment of the foreign trade of this 
country. 

6. No particular change, as far as I am aware. 

7. If an opinion can be based on the workings of the reciprocity 
treaties, I would say it would increse it about 40 per cent above the 
year 1893. 

8. The volume of my business for 1895 was about 100 per cent larger 
than that of 1890. 

9. They average about 10 per cent lower. 

10. The cost of goods in this country averages less than in Europe. 
Transportation charges are about the same. 

11. In the higher qualities of goods we can compete in price and 
quality very favorably j in the medium and low qualities we can undersell 
the foreign manufacturers, quality being equal. 

12. The reciprocity treaties were exceedingly favorable to the export 
trade of the United States. The effect of their repeal on my business 
is shown by the following figures: 

1890 Increase over previous year.. 35 per cent 

1891 Increase over previous year. . 69 per cent 

1892 Increase over previous year . . 29 per cent 

1893 Increase over previous year . . 2 per cent 

1894 Decrease from previous year . . 20 per cent 

1895 Decrease from previous year.. 3 per cent 

13. I am strongly in favor of any measure that will renew the reci- 
procity treaties. 



New Orleans Breiving Association, New Orleans, La, 

2. Brewers of lager beer in kegs and bottles. 

3. Eepublic of Mexico, all republics of Gentral America, the northern 
republics of South America, Cuba, and Jamaica. 

4. We have worked hard to extend our foreign trade by sending 
representatives into those countries, by advertising, by correspondence, 
by circulars, and by other means generally resorted to by business men. 

5. The abolishment of the "drawback system" by the Secretary of 
the Treasury, Hon. John G. Carlisle, as well as the exorbitant duties 
in vogue in some of the Latin- American countries, especially Cuba and 
the Republic of Mexico, have seriously restricted the extension of our 
trade in the countries mentioned above. 

6. We do not know of any changes that have recently occurred in the 
tariff of foreign countries so far as they relate to our line of business. 

7. Mexico and Cuba should reduce the tariff on beer about one-half 

8. The volume of our business six years ago amounted to about 
$125,000 per annum, while it has now decreased to about $60,000 per 
annum. 

9. Present selling prices have decreased about 10 per cent against 
six years ago. 

10. Our foreign competitors have a considerable advantage in the 
price of empty bottles. The cost of merchandise while likely in favor 
of our foreign competitors does not amount to much. In regard to 
transportation charges, the advantages of our competitors are very 



RECIPROCITY STATEMENTS. 499 

great, inasmuch as they are in constant intercourse with those coun- 
tries; their vessels receiving always full cargoes, thus placing them in a 
position to obtain cheaper freight rates than is possible from the United 
States. Their lines of steamers sail also more frequently and regularly 
than those of this country. We are also hampered here during certain 
times of the year with too severe quarantine restrictions. 

11. We claim superior quality of goods but our prices are somewhat 
higher than those of our foreign competitors. 

12. To this question we can not give you a positive reply, as we did 
not particularly pay that matter attention. / 

13. We favor the application of the reciprocity principle to future 
tariff legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible, as such legislation must undoubt- 
edly redound to the benefit of our commerce and encourage manufac- 
turers of this country. 

We suggest for the benefit of the beer business of the United States 
the refunding of duties paid on imported bottles but again exported to 
foreign countries filled with beer the manufacture of this country. 



SamH Bloom & Sons, San Francisco, Gal. 

2. Glove leather, for heavy working. Driving gloves, principally. 

3. Capital invested, including value of plant, etc., about $45,000. 
Hands employed vary, 25 to 35. Value of product ranges from $65,000 
to $90,000 annually. 

4. Sold mostly home. 

5. Yes. In England, by advertising, but our class of goods only 
slightly used there, as working gloves are a luxury apparently there. 

7. The discriminations are not in the sale of the finished goods, but 
in the purchase of the raw materials, viz, in better shipping facilities 
and obstacles in the matter of disinfections; better mail and cable con- 
nections, there being only small foreign connections on this side, and 
steamers making only occasional trips to Australia — about twelve 
steamers annually. 

10. Our output is at present about what it was six years ago. 

11. Cost of production is less somewhat, owing to lower price of silver ; 
our tonnage is cheaper abroad, and the duty reduction has lessened 
the cost of some of it. Also labor is somewhat cheaper. The raw 
stock (hides) have advanced a little. On the whole, we are, we think, 
on a little lower basis of cost to-day. 

12. The selling prices are also proportionately less. 

13. The only competition from foreign sources are in fine goods, and 
we think it is only a question of some ten years when all these better 
goods will be made here, when the knowledge of the class of raw stock 
required, and sources to draw it from, method of manufacturing, etc., 
are looked fully into. 

14. The foreign dealers in fine goods have the advantage of us in 
better facilities for shipping (raw and finished) and closer connections 
with the commercial world. Outside of that don't think they have 
much advantage in manufacturing as, to considerable extent, American 
genius has overcome European cheap labor of machinery. 

16. It has increased with us, on a whole, somewhat in years past. 



500 RECIPROCITY STATEMENTS. 

17. We think if all were to work to full capacity market at home 
would be unable to absorb it as fast as offered. 

18. It did not have any influence (latent) on our business so far as we 
know. 

19. Don't know. Farmers been crying this long time about low prices, 
but now, when they are at their lowest, they seem to have shut up for 
good and don't hear anything of them. Certain California products 
seem to be doing well in fruit; grain is low, however. 

20. We are in favor of anything which will foster foreign trade and 
make new outlets for goods, better shipping facilities, and closer com- 
mercial connections. 

In our especial line, glove leather, we as a nation have only been able 
to manufacture the coarser goods so far, but we see the entering wedge 
on fine goods and we feel satisfied if the commercial connections of 
America were better, as far as the shipment of raw merchandise is con- 
cerned, we would not only be able to control the trade on fine goods in 
our own country, but also in foreign lands. We have demonstrated 
this fact in the last ten years in fine shoe leathers, even in the face of 
the fact that a large quantity of goods were drawn through indirect 
sources and many obstacles 



Joseph P. Tolton, 105 Summer street, Boston, Mass. 

2. Shoes, shoe machinery, and shoe manufacturers' supplies. 

3. Great Britain, France, Germany, Austria, and Australia. 

4. Have made direct efforts to extend my trade by annual visits to 
Europe, advertising in English trade papers, and by correspondence 
with Australian concerns. 

5. The discriminations in France on American shoes as against, say, 
British shoes is no doubt a serious hindrance to American business, but 
I can not suggest any means of changing this unless we might con- 
sider the idea of making American ports as free for French goods as 
British ports are now for the sajne goods. Another hindrance I have 
met with is the delay and consequent annoyance caused by customs 
officers here when samples are sent over to this country for guidance 
in helping to meet foreign requirements. 

6. 7. I have no time to take close observations of foreign tariffs, that 
is a matter my customers must take care of themselves; they pay the 
duty, not I. Neither can I say to what extent the removal or reduction 
of the customs duties abroad would extend my trade. I believe these 
duties have much less bearing on the matter than is generally supposed. 

8. I only commenced business six years ago; my export turnover now 
reaches about $250,000 per year. 

9. Improvements in devices for manufactures have cheapened most 
articles I export. 

10. The greater advantages foreign merchants and traders possess are 
their better and more direct means of communication and transporta- 
tion. Foreign — that is, European — labor is much cheaper by the hour 
than American, but the cost of the result of the labor does not pro- 
portionately vary; for instance, shoes made in this locality cost per 
pair only about one-half for labor as compared, say, with Northampton 
or Leicester, the shoe centers of England, although the weekly earnings 
of the Massachusetts shoemaker amount to nearly twice as much as 
his English cousin; so that what advantages British shoe exporters 
possess as regards transportation are more than counterbalanced by our 
cheaper means of production. 



RECIPROCITY STATEMENTS. 501 

11. In every way I, and everybody in this locality earnestly wishing 
for foreign business in shoes and kindred articles, can compete with the 
world. 

12, 13. If reciprocity means a lowering of our tariffs to a favored 
few nations, I am in favor of it as far as it goes, and the larger the 
number of "favored nations" the more I am in favor of it, until we 
rearm a condition when we can freely buy and sell with the whole world. 



Crown Distilleries Company, San Francisco, Col. 

2. Manufacturers, dealers, exporters, and bottlers of spirits and wines. 

3. Capital, $750,000; average pay roll, 40 persons; annual output, 
$1,750,000. 

4. Market our product both home and abroad; proportion of export 
about 5 per cent. 

5. Sell both direct to foreign dealers and through commission mer- 
chants. 

6. Have worked and are working through foreign resident agents and 
through traveling salesmen; work in China, Japan, Australia, Hawaii, 
Central America, Mexico, and British Columbia. Are trying to reach 
South America, but transportation facilities from San Francisco not 
favorable. 

7. As to discriminations or obstacles : 

British Columbia. The Dominion of Canada obstructs the exportation 
of American spirits or any spirits from American ports by prescribing 
an unmerchantable package. Attached copies of correspondence 
explain the matter. The Secretary of State seems unable to provide a 
remedy. The remedy lies with Congress and with the President, under 
the tariff act of August 28, 189-1, which empowers him to retaliate. 

8. In Hawaii the spirit duty has been advanced to $3.50 per gallon, 
and it is proposed to advance the duty on wines from 15 to 50 cents per 
gallon, and on beer from 15 to 30 cents per gallon. The United States 
have a reciprocity treaty with Hawaii. 

9. The removal or reduction discriminately in our favor would give 
us a monopoly of the trade in our lines to the countries named in 
answer 6. It would be the greatest of boons to the vineyardists of our 
State. 

10. Our output has not increased in six years. 

11. Production cost has decreased; transportation has not. 

12. Selling prices are lower. 

13. Competition to countries named in answer 7 comes from Canada, 
Germany, France, and England. 

14. Foreign competitors have no advantage in gross cost, that is, the 
cost of the product plus the labor employed. Germany, producing a 
poorer alcohol at a higher cost, pays an export bounty which prevents 
our competing. This affects not only the distiller, but also the farmer 
from whom the grain is bought. Their laws are assisting to exporters. 
The American exporter of spirits can not secure the cancellation of his 
export bonds by a filing of an outward bill of lading and clearance 
certificate, but is compelled to annoy the foreign buj-erwith the execu- 
tion of a landing certificate and its attendant expense, something that 
is not imposed by any other civilized country. Eeference is made to 
attached papers marked answer 14. Again, goods of American manu- 
facture for consumption at sea are discriminated against and goods of 



502 RECIPROCITY STATEMENTS. 

foreign production favored. See copies of H. E. bills 1211 and 1212 
attached. You are referred to Hon. Grove L. Johnson, House of Rep- 
resentatives, and Hon. Geo. 0. Perkins, United States Senate, for expla- 
nation of position of proposed remedy. 

15. Our quality is better and our prices no higher than foreign 
products. 

16. The total product has not increased. 

17. The surplus for export is large and could be moved if assisted. 
Inability to do so has created depression and low prices. 

18. We were not injured by the repeal of the reciprocity treaty 
because our lines were not given free entry under same. 

19. None, so far as respects our products. They could, however, be 
materially assisted by judicious treaties. Our vineyardists would not 
be compelled to seek cheap alien labor if markets were opened to them 
by favorable reciprocity treaties. 

20. We do. 



[Correspondence.] 

Department of State, 

Washington, January 31, 1896. 
Sir: Referring to previous correspondence relative to the discrimination by the 
Government of the Dominion of Canada against the United States in the matter of 
the restrictions imposed upon spirits exported from the latter to the former country, 
I have to acknowledge the receipt of your letter of the 14th instant on the subject. 
Your representations in regard to the matter having been carefully considered, 
the Department has reached the conclusion that your complaint is one which 
properly should be submitted to the legislative branch of the Federal Government 
by a petition to Congress. 

I am, sir, your obedient servant, 

Richard Olney. 
E. R. Lilienthal, Esq., 

President of the Croivn Distilleries Company, 

100-102 Front street, San Francisco, Cal. 



San Francisco, January 14, 1896. 

Sir : I have the honor to acknowledge your esteemed note of January 7, with copies 
of your (1) letter of September 1, 1895, to tbe British ambassador; (2) letter of Sep- 
tember 24, from the British ambassador to the Governor-General of Canada; (3) Ca- 
nadian minute in council, of date December 2, 1895 ; (4) letter of December 31, from 
the British ambassador to yourself, and take due note of your advice that the order 
in council, section 12, caput 13, of the Consolidated Orders in Council, July 25, 1888, 
was adopted for the prevention of smuggling ; is not, in fact, a discrimination against 
the United States, and does not preclude the transit of spirits from exempted coun- 
tries through the United States. The Canadian order in council complained of reads : 

"That brandy, gin, whisky, or other distilled spirits shall not be imported into 
any part of Canada in any undecked vessel, or in any vessel under the burden of twenty 
tons, registered tonnage, or in any vehicle by land other than a railway car, or in any 
package (except bottled spirits) containing less than one hundred gallons, wine 
measure, except that spirits may be imported in casks of not less than thirty-five 
imperial gallons' capacity, when for the purpose of being manufactured with other 
articles under regulations and surveillance of the department of inland revenue : 
Provided, however, That such spirits may be imported direct from Great Britain and 
other European countries, and from any British colony and from the West Indies 
Islands, in packages of not less capacity than half octaves, or in glass." 

It is a modification of the order of June 14, 1883, which I quoted in my letters of 
August 26 and those following. It distinctly reenacts the discriminating clauses. 
It prohibits the importation into Canada of spirits in packages of less than 100 
imperial gallons' capacity (except bottled spirits) unless imported " direct from 
Great Britain and other European countries, and from any British colony, and from 
the West Indies Islands," etc. That is to say, spirits shipped from any European 
country direct to any part of Canada will be permitted entry " in packages of not 
less capacity than half octaves" (10 gallons), but if imported from the United States 



RECIPROCITY STATEMENTS. 503 

they will not be permitted entry except in an unwieldy and unmerchantable package, 
containing not less than 100 imperial gallons' capacity. 

As the amount of spirits manufactured in the Orient is quite small, and its con- 
sumption equally so, and as this country is the only spirit-producing country not 
favored by the exemption in the order, it does not seem unjust to characterize the 
order as intentionally discriminating against spirits the product of the United 
States. 

It may be not improper to draw your attention to the fact that spirits are largely 
distilled in Canada, enjoy a considerable sale in the United States, and that no 
restriction whatever as to size or style of package is imposed on Canadian spirits 
when entered either for consumption in the United States or transit through same. 
It can not be contended that spirits produced in the United States and withdrawn 
from distillery bonded warehouse, thence taken in bond to a port of export, and thef*e 
laden and manifested for any part of Canada could be smuggled into Canada, par- 
ticularly where the custody of such spirits is constantly under the control of the 
officers of our Government and under a system stricter and more rigid than that 
imposed by any other country in the world. 

The producers of spirits in the United States are quite as desirous of exporting 
their product to Canada as are the Canadian producers to do so to the United States, 
and there can be no good reason why American manufacturers should not be assisted 
by their Government in excluding Canadian products by onerous and restrictive pro- 
visions if American products are not to enjoy in Canada equal favors with other 
Eurojjean countries and equal privileges to those enjoyed bv them in the United 
States. 

The order does " preclude the transit of spirits from the exempted countries 
through the United States to Canada," as stated by you in your note to the British 
ambassador of September 1, 1895, and such interpretation is made by the acting com- 
missioner of customs at Ottawa, as shown by copies of telegrams exchanged and 
quoted. 

Telegrams exchanged between Hon. F. E. Kilvert, Acting Commissioner op 
Customs, Ottawa, Ontario, Canada, and Crown Distilleries Company, 
San Francisco. 

August 23, 1895.— Sent : 

"Can French brandies, Holland gins, Irish and Scotch whiskies, in quarters and 
octaves, have entry in British Columbia, bonded here and exported in transit? 
Answer. Collect." 

August 23, 1895. — Received: 
"No." 

Quarters contain 40 American gallons (about 33 imperial gallons) and octaves 20 
American gallons (say about 17 imperial). French brandies and Holland gins come 
from European countries. Irish and Scotch whiskies come from Great Britain. These 
spirits, when entered into bond in the United States on arrival from a foreign port 
and then exported out from a United States customs bonded warehouse to Canada, 
are not, by the " order in council," permitted entry because not in packages of not 
less than 100 imperial gallons. 

Surely the American manufacturer is entitled either to the assistance of his Gov- 
ernment toward the removal of an onerous restriction, so as to be able to compete 
in the Canadian market, or be assisted by equally onerous provisions in making diffi- 
cult Canadian competition in our home markets. 

I submit the matter for your further esteemed consideration, and have the honor 
to remain, 

Very respectfully, 



Hon. Richard Olney, 

Secretary of State, Washington, D. C. 



E. R. LlLIENTHAL. 



Department of State, 

Washington, January 7, 1896. 
Sir : Referring to your letter of the 26th of August last, relative to the alleged 
discrimination by the Canadian Government against the importation of distilled 
spirits from the United States into Canada, and to the subsequent correspondence 
on the subject, I now inclose for your information a copy of a note from the British 
ambassador at this capital, dated December 31, 1895, with accompanying copy of a 
Canadian minute in council on the matter, from which it appears that the Canadian 



504 RECIPROCITY STATEMENTS. 

regulation to which exception is taken has been in force at least since the confedera- 
tion in 1867, and that, being adopted for the prevention of smuggling, it applies to 
importations from other sources than the United States. If there is in fact no dis- 
crimination against this country, it does not appear that any ground for complaint 
exists. 

I am, dear sir, your obedient servant, 

Richard Olney. 
E. R. Lilienthal, Esq., 

President of the Crown Distilleries Company, San Francisco, Cal. 
(Inclosure: From Sir Julian Pauncefote, December 31, 1895, with accompanying 
copy of Canadian minute in council dated December 2, 1895.) 

[Inclosure.] 

British Embassy, 
Washington, December 31, 1895. 

Sir: Referring to my note of the 11th ultimo and to previous correspondence 
respecting the complaint of your Government of an alleged discrimination against 
the importation of distilled spirits from the United States into Canada, I have the 
honor to inform you that I am in receipt of a communication from His Excellency 
the Governor-General of Canada, forwarding copy of a minute of his excellency's 
privy council, embodying the observations of the Canadian minister of trade and 
commerce upon the matter. 

The minute, copy of which I have the honor to inclose, states that the regulation 
to which exception is taken has been in force at least since the confederation of 
1867, and applies to importation from other sources than the United States. 

It is further represented that the consideration which induced the framing of the 
original enactment, viz, the prevention of smuggling, has greater force at the present 
day, the incentive to smuggling being greater owing to the higher rates of duty on 
spirits, while the present regulations are less stringent. 

It does not, therefore, appear expedient to the Dominion Government to cancel 
these regulations. 

I have the honor to be, with the highest consideration, sir, your most obedient, 
humble servant, 

Julian Pauncefote. 
. The Hon. R. Olney. 

[Extract from a report of the committee of the honorable the privy council approved by his excel- 
lency on December 2, 1895.] 

The committee of the privy council have had under consid oration a dispatch, 
hereto attached, dated September 24, 1895, from Her Majesty's ambassador at Wash- 
ington, transmitting a copy of a note from the Secretary of State of the United 
States, of date 21st September last, having reference to what he claims to be a dis- 
crimination against the importation of distilled spirits from the United States into 
the Dominion of Canada. 

The minister of trade and commerce, to whom the matter was referred, reports 
that Mr. Olney, in his note, states that the Department has received a letter from 
the Crown Distilleries Company of San Francisco, alleging that the Canadian order 
in council of the 14th day of June, 1883, unjustly discriminates against the impor- 
tation of distilled spirits from the United States, and he goes on to quote what he 
purports to be the provisions of the order in council in question, and remarks that 
the order embarrasses the export of spirits from the United States to Canada, as 100- 
gallon packages are unusual, and that it also precludes the transit of spirits from the 
exempted countries through the United States to Canada, since the admission of 
such packages is granted only to direct importations from the countries named in 
said order in council. 

The minister states, that the order in council governing the size of the packages 
of spirits which maybe imported into Canada is to be found in section 12, canjit 13, 
of the Consolidated Orders in Council, and bears date the 25th of July, 18b8, and 
reads as follows : 

" Sec. 12. (A) Brandy, gin, whisky, or other distilled spirits, shall not be imported 
into any part of Canada in any undecked vessel, or in any vessel under the burden 
of 20 tons registered tonnage, or in any vehicle by land other than a railway car, or 
in any package (except bottled spirits) containing less than 100 gallons wine meas- 
ure, except that spirits may be imported in casks of not less than 35 imperial gal- 
lons capacity, when for the purpose of being manufactured with other articles under 
regulations and surveillauce of the department of inland revenue; provided, how- 
ever, that such spirits maybe imported direct from Great Britain and other European 
countries, and from any British colony and from the West India Islands, in packages 
of not less than half octaves or in glass. 



RECIPROCITY STATEMENTS. 505 

"B. Wine and malt liquors shall not be imported in any other conveyance than 
those above described, bat may thus be imported in any of the packages usual, 
according to the ordinary custom of trade. 

" C. Any spirits imported contrary or in violation of this regulation, or any part 
thereof, shall be seized and forfeited." 

The minister further states that this order in council is based upon authority given 
the Governor-General in council by section 245, subsection (E) of the customs act as 
found in the Revised Statutes, 1886. 

Prior to the consolidation of the statutes practically the regulations itself formed 
part of the customs act (vide 40 Vic, cap. 6, sec. 81, 1867), which reads as follows: 

" Except in cases which by any regulation to be made by the Governor-General in 
council may be excepted from the operation of this section, all spirits (unless in/ 
bottle and imported from the United Kingdom or in bond from a bonded warehouse 
in some British possession) brought into Canada in casks or packages of less size thau 
to contain 100 gallons, or in other than decked vessels of not less than 30 tons reg- 
ister, or that may be found on board of any vessel under such tonnage in any part of 
Canada, shall be forfeited, and the proof that any spirits lauded in packages of less 
size than to contain 100 gallons, have been lawfully imported and entered, shall 
always be upon the person offering the same for sale." 

The minister observes that this in turn appears to have been taken from some act 
in force prior to confederation, but it would serve no good purpose to attempt to 
trace it further back, the traditions of the Department being that its original enact- 
ment became necessary in order to prevent extensive smuggling of spirits into prov- 
inces which are now comprised in the Dominion of Canada. 

The minister also observes, that it governs the importation of spirits from other 
sources than the United States, and that in consequence of the difficulty existing at 
the present day in preventing such smuggling, it does not appear to him that it 
would be expedient to cancel the regulation, the incentive to smuggle being greater 
now in consequence of the higher rates of duty imposed upon spirits than at the 
time of its original enactment, while the present regulations are less stringent than 
originally. 

The minister further observes that the inference drawn by Mr. Olney, to the effect 
that the regulation precludes the transit of spirits through Canada, is erroneous, 
inasmuch as no restrictions have ever been placed upon such transit other than those 
applicable to other goods, and, in point of fact, large quantities of spirits are 
imported into Canada from foreign countries through the United States, and large 
quantities of United States spirits pass in transit through Canada. 

The committee, on the recommendation of the minister of trade and commerce, 
advise that your excellency be moved to forward a certified copy of this minute, if 
approved, and of its appendixes, to Her Majesty's ambassador at Washington. 

All of which is respectfully submitted for your excellency's approval. 

John J. McGee, Clerk of the Privy Council. 



Sir Julian Pauncefote to the Earl of Aberdeen. 

Newport, R. I., September M, 1S95. 
My Lord : I have the honor to forward herewith to you? excellency copy of a note 
as marked in the margin, which I have received from the Secretary of State, Mr. 
Olney, respecting discrimination against the importation of distilled spirits from the 
United States into the Dominion of Canada. 
I have, etc., 

Julian Pauncefote. 
The Earl of Aberdeen. 

[Mr. Olney's note to Sir Julian Pauncefote.] 

Department of State, 

Washington, September 1, 1895. 

My Lord: I have the honor to inform you that the Department has received a 
letter from the Crown Distilleries Company of San Francisco, Cal., alleging that the 
Canadian order in council of the 14th day of June, 1883, unjustly discriminates 
against the importation of distilled spirits from the United States into the Dominion 
of Canada. 

The provision of said order on which the complaint of the Crown Distilleries 
Company is predicated is as follows : 

"That brandy, gin, whisky, or other distilled spirits shall not be imported to any 
port of Canada in any packages (except bottled spirits) containing less thau 100 gal- 
lons wine measure: Provided, however, That such spirits may be imported direct from 



506 RECIPROCITY STATEMENTS. 

Great Britain and European countries and from any British colony, and from the 
West India Islands, in packages of not less capacity than octaves, or in glass." 

This order not only embarrasses the export of spirits form the United States to 
Canada, as 100-gallon packages are unusual, but also precludes the transit of spirits 
from the exempted countries through the United States to Canada, since the admis- 
sion of such packages is granted only to direct importations in the countries named 
in the order in council of July 14, 1883. 

In view of the discrimination made by the Canadian authorities against the Amer- 
ican merchants engaged in the trade in spirits, I have the honor to request you to do 
me the favor to bring this subject to the attention of Her Majesty's Government, and 
to express the hope entertained by the Department that the propriety of revoking 
so much of the order complained of as discriminates against the commerce of this 
country may be taken into consideration. 

I have the honor, etc., Richard Olney. 



54th Congress, > H. R. 1211. 

1st Session. ) 

In the House of Representatives. 

December 10, 1895. 

Read twice and referred to the Committee on Ways and Means, and ordered to be 

printed. 

Mr. Johnson, of California, introduced the following bill: 

A BILL 

To encourage the export of American manufactures. 

Be it enacted by the Senate and Bouse of Representatives of the United States of America 

in Congress assembled, That all articles of domestic production needed and actually 

withdrawu from bonded warehouses for consumption on any vessels engaged in foreign 

trade, or in trade between the Atlantic and Pacific ports of the United States, may 

be withdrawn from said bonded warehouses free of tax, under such regulations as the 

Secretary of the Treasury may prescribe. 

Sec. 2. That all laws and parts of laws in conflict with the provisions of this act 
are hereby repealed. 

54th Congress, > H. R. 1212. 

1st Session. ) 

In the House of Representatives. 

December 10, 1895. 

Read twice, referred to the Committee on the Merchant Marine and Fisheries, and 

ordered to be printed. 
Mr. Johnson, of California, introduced the following bill : 
A BILL 
To amend the act entitled "An act to remove certain burdens on the American mer- 
chant marine and encourage the American foreign carrying trade, and for other 
purposes/' approved June twenty-sixth, eighteen hundred and eighty-four. 

Be it enacted by the Senate and House of Representatives of the United States of America 
in Congress assembled, That the sixteenth section of the act entitled "An act to 
remove certain burdens on the American merchant marine and encourage the Amer- 
ican foreign carrying trade, and for other purposes," be amended so as to read as 
follows : 

Sec. 16. That all articles of foreign or domestic production needed and actually 
withdrawn from bonded warehouses for consumption on vessels of the United States 
engagad in the foreign trade or in trade between the Atlantic and Pacific ports of the 
United States may be withdrawn from said bonded warehouses, free of duty or of 
internal revenue tax, as the case may be, under such regulations as the Secretary of 
the Treasury may prescribe. 

Sec. 2. That all laws and parts of laws in conflict with the provisions of this act 
are hereby repealed. 



Treasury Department, Office of the Secretary, 

Washington, D. C, January 14, 1896. 
Gentlemen: Your letter of the 4th ultimo has been under consideration since its 
reception, and you are now informed, in reply, that the Department will permit a 
cancellation of bonds filed with the collector of customs on the exportation of dis- 



RECIPROCITY STATEMENTS. 507 

tilled spirits from warehouse No. 6, on the evidence afforded by the outward bills of 
lading and clearance certificates. 

A similar concession has been made in the case of a tobacco manufacturing ware- 
house recently established at Petersburg, Va., the bond being modified so as to 
include the above changes in regard to the required proofs of exportation, and the 
customs papers being made to conform in the respect mentioned with the bond. 

When your application shall reach the Department the matter will receive the 
requisite attention. 

Respectfully, yours, C. S. Hamlin, 

Assistant Secretary. 
Crown Distilleries Company, 

100 Front street, San Francisco, Cal. / 



San Francisco, February 19, 1896. 
Dear Sir : We have the honor to acknowledge your letter of January 14, 1896 
(6542-G), responsive to our letter of December 4, 1895. 
We note with thanks the ruling that — 

"The Department will permit a cancellation of bonds filed with the collector of 
customs on the exportation of distilled spirits from warehouse No. 6 on the evidence 
afforded by the outward bills of lading and clearance certificates," and that as soon 
as our application shall reach the Department the matter will receive the requisite 
attention. 

Will you please be advised that our application goes forward concurrently here- 
with, and we will esteem the issuance of instructions to the honorable the collector 
of customs at the port of San Francisco. 

Very respectfullly, Crown Distilleries Company. 

E. R. Lilienthal, President. 
Hon. Secretary of the Treasury, 

Washington, D. C. 



Treasury Department, Office of the Secretary, 

Washington, D. C, March 9, 1896. 
Sir: The Department is in receipt, through Mr. E. M. Cleary, of this city, of your 
letter of the 19th ultimo, asking that the collector of customs at San Francisco may 
be instructed to cancel bonds covering goods exported from your bonded manufac- 
turing warehouse in San Francisco on the evidence afforded by the outward bills of 
lading and clearance certificates instead of upon proof of landing abroad, as pre- 
scribed in the regulations of this Department of November 14, 1894, a copy of which 
is herewith inclosed for ready reference (S. 15442). 

In reply, I have to state, as there is no statutory provision on which the Depart- 
ment could, permit cancellation of bonds covering liquors exported from bonded 
manufacturing warehouse upon such evidence, your application is necessarily denied. 
Under date of May 3, 1895, the Department prescribed regulations for the cancel- 
lation of bonds given on the exportation of tobacco from bonded manufacturing 
warehouses on evidence that the goods have been duly laden, under customs super- 
vision, on board a foreign-bound vessel, have been entered on the outward manifest, 
and that the vessel and cargo have been duly cleared for a foreign port. This meas- 
ure was based upon the provisions of the acts of June 8, 1880, and August 8, 1882, 
amendatory of section 3385 of the Revised Statutes, relating to tobacco and not to 
liquors. 

Respectfully, yours, S. Wike, 

Acting Secretary. 
The President of the Crown Distilleries Company, 

San Francisco. 



REPLIES 



OF 



COMMISSION AND EXPORT MERCHANTS 



TO THE 



INQUIRIES OF THE COMMITTEE ON WAYS AND MEANS, 



509 



COMMISSION AND EXPORT MERCHANTS. 



CIRCULAR OF INQUIRY TO MERCHANTS. 

Committee on Wats and Means, 

House of Representatives, 
Washington, D. (7., March 4, 1896. 
Sir: In order that they may give more intelligent consideration to 
pending and proposed legislation, the subcommittee of the Committee 
on Ways and Means of the House of Representatives in charge of bills 
relating to reciprocity arrangements and commercial treaties would be 
greatly obliged if you would forward them, at your early convenience, 
your views and suggestions and such information as you are able to 
furnish upon the following points, namely: 

1. Give full name and address of firm or company. 

2. Lines of trade. 

3. With what foreign countries do you deal? 

4. Have you made any direct effort to extend your foreign trade; 
and if so, by what means, with what success, and in what countries'? 

5. Are you aware of any discriminations or obstacles in the laws or 
customs regulations of any foreign country that restrict or prevent the 
extension of your trade; and if so, can you suggest any means by 
which they may be removed? 

6. What changes have recently occurred in the tariffs of foreign 
countries so far as they relate to your line of exports'? 

7. How far would the removal or reduction of the customs duties 
imposed by foreign nations upon the merchandise in which you deal 
aid in the extension of your export trade? 

8. What is the volume of your business compared with that of six 
years ago? 

9. How do present selling prices compare with those of six years ago ? 

10. What advantages do your foreign competitors have over you in 
the cost of merchandise and in transportation charges to foreign 
markets ? 

11. To what extent can you compete with foreign merchants in qual- 
ity and prices? 

12. Was the general effect of the reciprocity treaties made in 1890 
favorable or unfavorable to the export trade of the United States, and 
what was the effect of their repeal? (If your reply to this inquiry is 
based uj>on actual experience, please give details as fully as possible.) 

13. Do you favor the application of the reciprocity principle to future 
tariff' legislation, and the enactment of a general law authorizing the 
President to negotiate reciprocity treaties with both European and 
American nations, so far as possible? 

511 



512 RECIPROCITY STATEMENTS. 

These inquiries have been forwarded to several firms and corpora- 
tions engaged in the export trade, and the replies are intended for pub- 
lication with a report which the Committee on Ways and Means will 
make to the House of Bepresentatives; but, if so desired, any informa- 
tion received will be regarded as confidential. All values should be 
expressed in United States gold, and all quantites in our weights and 
measures. 

Any suggestions or information of value bearing on these subjects 
that is not called for by the above inquiries will be appreciated. 
I am, sir, your obedient servant, 

A. J. Hopkins, 
Chairman Subcommittee on Reciprocity and Commercial Treaties, 



EEPLIES. 

Cone Export and Commission Company, New York, JST. Y. 

The undersigned, not being able to appear before your committee in 
person, takes pleasure in giving you the following information : 

Since February, 1892, this company established an export department, 
appointing the undersigned manager, in consequence of a successful 
trip he made for the company to Brazil, at which time the reciprocity 
treaty was in force. From February until December, 1894 (when the 
treaty was repealed), we shipped to Brazil $165,006.72 worth of colored 
cotton goods manufactured by cotton mills located in North and South 
Carolina. The effect of the repeal is shown by the fact that in 1895 we 
only succeeded in shipping $34,006.75, a decrease of over $130,000. 

You can safely estimate that if the treaty had continued in force, our 
business in 1895 would have been at least $350,000 to $400,000, and my 
assumption is based on the fact that to all other countries where we 
exported in 1894 our business was doubled and even trebled in 1895, 
Brazil being the only country where our business fell off. It must fur- 
thermore be taken into consideration that in Brazil we had not only to 
pay the 25 per cent differential duty, which we enjoyed under the treaty, 
but furthermore the Brazilian Congress enacted a law by which it 
increased the duties, and in January of this year a further increase was 
decreed — this, however, not against American goods alone, but it affected 
all cotton goods imported. The reason this law was enacted was to 
protect a large number of cotton mills which were built in Brazil during 
1894 and 1895. 

The class of American cotton goods exported at present to Brazil is 
principally such as they can not manufacture themselves. 

In Santo Domingo our trade in 1894 was $15,162.52; in 1895 it was 
$33,553.89; an increase of about $18,000. This is explained by the fol- 
lowing fact : That in 1894 we only had a limited number of customers in 
that island, while in 1895 we extended the number to about five times 
as many as we had in 1894. Had the reciprocity treaty continued in 
force we should have done in 1895 at least $100,000 worth of business. 
Comparing the number of customers we had in 1894 with those we 
secured in 1895, each customer with whom we did business in 1894 
bought from us only one-third of what he had bought in 1894, so had we 
not increased our list of customers in 1895 our business would probably 
have been lost entirely. 



RECIPROCITY STATEMENTS. 513 

In 1895 we established business in Puerto Rico, and succeeded in 
shipping about $8,000 worth of goods. We can only ship one or two 
lines to that market, because of the very high duties prevailing there 
protecting the import of goods made by the Spanish mills, and from 
Cuba we are entirely excluded, because the few articles we sell in Puerto 
Eico are of such a poor quality that they are not used in Cuba, where a 
better class of goods only are salable. What we have stated above is 
in lieu of a personal hearing. 

Cone Export and Commission Company, 105 Franklin street, New York, 

N. Y. 

2. Colored cotton goods. 

3. We are not manufacturers ; we represent about forty cotton mills, 
the combined capital of which we do not know, nor number of persons 
employed. Our corporation's capital is $1,000,000. Employees and 
travelers, about fifty. Annual sales, six millions. 

4. At home and abroad we find our market. One- twentieth abroad. 

5. We sell both direct and through commission houses. 

6. We have secured all our export trade through travelers who have 
been sent out to Brazil, Argentina, Chile, Bolivia, all Central American 
Eepublics, Colombia, Venezuela, Haiti, Santo Domingo, the most import- 
ant islands of the English and Danish West Indies, Honolulu, China, 
and Japan. With the exception of our China and Japan traveler, all 
the others were a success. We have had as many as six men traveling 
at the same time, at an expense of about $2,500 a month. 

7. With the exception of the French colonies, where our goods pay 
a higher duty than similar goods imported from England, we do not 
know of any. 

8. With the exception of the increase of duties in Brazil, we do not 
know of any changes. 

9. Unless a considerable reduction can be made in the duties it will 
not aid business materially. The removal of such duties would, of 
course, extend our export trade to at least ten times its present propor- 
tions. 

10. We were not in business six years ago. 

11. We refer to the preceding. 

12. We refer to the preceding. 

13. In every foreign market where we have so far done business we 
have met principally with English competition, but also with other 
European manufacturers. 

14. It is an established fact that the wages are very much lower in 
England and Europe, and they secure cheaper freights. For example, 
we can ship goods from New York to South Brazil via Hamburg cheaper 
than we can ship them by direct steamer from New York. There is 
furthermore the inconvenience that goods shipped from New York to the 
south of Brazil are transshipped at Rio de Janeiro, and the Brazilian 
Government compels the merchants in the south of Brazil to pay duties 
at Rio if such goods are transshipped there, while when they are sent 
via Hamburg they reach their destination direct. 

15. In similar quality goods we can compete with foreign markets, 
but in a great many of the foreign markets the largest proportion of 
goods used is of an inferior quality to those our manufacturers are pre- 
pared to make, due to the higher wages in this country, as it would 
not pay. 

H. Rep. 2263 33 



514 RECIPROCITY STATEMENTS. 

16. It lias increased largely. 

17. We are not in a position to answer this question except so far as 
the mills which we represent are concerned. If they were to produce to 
their full capacity, we should be able to dispose of $1,500,000 worth of 
goods for them for export instead of $300,000, which we are exporting 
now. 

18. The effect was favorable ; the repeal caused a considerable falling 
off of trade in our line. 

19. Not in oar line. In regard to 18 we have given you detailed infor- 
mation in another letter. 

20. Yes. 

English and European exporters have great banking facilities, which 
enable them to grant a long term of credit to their foreign customers, 
because they are able to sell their paper to banks who have branches 
in foreign countries, but the American export merchant or manufac- 
turer who does his export business himself can not obtain these advan- 
tages, because of the lack of such banking facilities, and has therefore 
to sell his goods either against cash or on short credit. 

If a bank were to obtain a charter in this country, authorizing the 
establishment of branches all through South and Central America as 
well as Mexico and other foreign countries where the business would 
warrant it, then we would be able to grant our foreign customers equally 
as long credit as they now get in Europe, and that would in itself, of 
course, largely increase our business. 

We make this statement from actual experience, because as soon as 
we have commenced to grant credit to some of the largest houses in 
South America our business has increased, and many of the foreign 
houses would not have bought from us at all if we had compelled them 
to send orders through a commission house, because they do not wish 
to pay the extra commission for the purpose of obtaining a credit, but 
they want to deal direct with the manufacturers' agents, if possible. 

Keplying to your circular containing four interrogations, we beg to 
express the following opinion : 

First. The effect of the reciprocity arrangement was favorable. 

Second. The repeal caused the loss of at least 66 per cent of the 
business obtained during the existence of the treaty. 

Third. It is both expedient and advisable to apply the reciprocity 
principle to future tariff legislation and to enact a general law author- 
izing the President to negotiate reciprocity treaties with foreign nations 
so far as possible, and not only to reinstate the treaties which existed 
before, but to try to establish them with Colombia, Venezuela, and the 
Argentine Bepublic as well. These countries are very large consumers 
of European goods. 

Fourth. A great deal can be accomplished if a competent consular 
service is established. Whenever possible, American merchants of 
good standing, established in foreign countries, should be appointed 
consuls in preference to persons who have no knowledge of commercial 
routine, and who very often have no knowledge of the language of the 
country where they are sent, which is an obstacle to their obtaining, by 
personal investigation, some of the most important details needed by 
the merchant at home who contemplates extending his export trade. 

All European consuls furnish such information with the greatest 
detail and care, while American consuls very often can not supply this 
information from lack of knowledge, and because the majority of those 
appointed are unfitted for the position. 



RECIPROCITY STATEMENTS. 515 

William E. Peck & Co., New York, N. T. 

2. General exportation of American products; our leading lines 
being, first, cotton goods; second, electrical machinery and supplies; 
third, general hardware. 

3. Great Britain, France, Germany, Austria, Australasia, Mexico, 
Central America, Chile, Argentine Eepublic, Uruguay, and Brazil. 

4. Yes; by means of resident agents and branch offices carrying 
stocks of particular lines we are interested in selling. These efforts 
have been particularly successful in London, Melbourne, and Sydney. 

5. No. 

6. No answer. 

7. Materially so; probably doubling or trebling our trade with some 
countries — as, for instance, with Brazil. 

8. 33£ per cent greater. 

9. Materially lower, especially in hardware and electrical apparatus 
and machinery. 

10. Our foreign competitors have a decided advantage over us in the 
matter of both slow and fast steamers to the west coast of South America, 
and especially to Australasia. We feel we are very much handicapped 
through lack of a steam service from New York to the principal Aus- 
tralian ports. We firmly believe that even a monthly line of steamers 
from New York to Australian ports would double our business to that 
country. There are many lines of American goods, the cost of which, 
although the prices are on a par with the prices of the competing con- 
tinental article, yet are shut out simply because of the higher cost of 
freight. This is particularly true of coarse, cheap goods, where a dif- 
ference of one or two dollars in the rate of freight is a large percentage 
on the cost of the article. 

11. Quality and good value considered, our prices compare favorably 
with those of many foreign merchants. Unfortunately, however, price 
in many foreign markets is a greater factor than quality. 

12. Decidedly favorable especially as regards our trade with Cuba 
and Brazil. The repeal of these reciprocity laws was severely felt in 
the case of trade with both these countries. We should say that our 
business with Brazil fell off two-thirds the year after the reciprocity 
treaty with Brazil was ended. 

13. Decidedly, yes. We are more and more convinced that what we 
want is not free trade, but fair trade, and writer makes this admission 
after having been for fifteen years an ardent free trader. 



Smith, Hogg & Gardner, New York, 

2. Dry goods commission, for the sale of cotton fabrics and carpets, 
representing as selling agents the Boott, Massachusetts, Tremont, York, 
and Everett cotton mills, located in New England. 

3. China, Japan, South America, Central America, Mexico, Hono- 
lulu, and Africa. 

4. We have made no effort to extend our trade beyond the forward- 
ing of samples of our fabrics through the American commission houses 
representing foreign houses, which we are doing continually. 

5. In the matter of purchases by Cubans, consequent upon the heavy 
duties laid by Spain upon imported merchandise of other than Spanish 



516 RECIPROCITY STATEMENTS. 

manufacture, it is necessary for our buyers to ship American goods to 
Spain for transshipment thence to Cuba. 

A more specific reply to this fifth inquiry should be obtained from the 
American representatives of foreign houses in this country; and they 
are practically the only firms competent to reply intelligently to queries 
6 and 7, as we do not deal directly with these markets. 

8. Our export business, as compared with that of six years ago, is 
much larger. 

9. Materially lower. 

10. The main advantage possessed by foreign manufacturers is in the 
lower cost of labor. Eegarding transportation charges, the bulk of the 
freight is forwarded in foreign bottoms, and even when (as is frequently 
the case) heavy shipments are made from Lowell to the west coast of 
America for transshipment to China or Japan, the goods are carried 
over the Canadian Pacific, presumably owing to lower rates of freight. 

11. Superior mechanical contrivances enable us to compete success- 
fully with the foreign manufacturer in fabrics, wherein the element of 
labor is not a large percentage of their cost. 

12. We decidedly favor reciprocity treaties with such countries as 
require our manufactured articles, those heretofore existing having 
undoubtedly tended to the encouragement of American manufactures. 



Pomares & Cushman, New York. 

2. Shipping and commission, which necessitates exporting and 
importing. 

3. At present chiefly with the five Republics of Central America. 

4. We have in the way of shipping by our line of sailing vessels 
around Cape Horn, to the Central American Eepublics, and with fair 
success. 

5. These countries do not discriminate against the United States; 
on the contrary, we think they are inclined to give us preference over 
other countries. 

6. Since the abrogation of the reciprocity treaties the former duties 
have been generally imposed on most articles which were free. 

7. We believe that the reduction of duties on articles, such, for exam- 
ple, as petroleum, mineral coals, soap materials, such as tallow, rosin, 
etc., would double the trade in a short time. 

8. The volume of our business has not increased during the past six 
years. It is about the same, a reduction of the commission shipments 
and an increase of exports on our own account. 

9. Present prices are considerably less than six years since; we may 
safely say from 25 to 30 per cent. 

10. Our foreign competitors all give long credits — from six to nine 
months. We can not do this, as most of the merchandise we export 
has to be paid for within a few days after delivery. Their freights by 
sailing ships and by steamers are decidedly cheaper than from this 
country. 

11 . Goods of European manufacture are generally cheaper than ours, 
but then the quality is usually inferior. 

12. The reciprocity treaty was extremely favorable to our trade, 
especially with Cuba. 



RECIPROCITY STATEMENTS. 517 

"We exported to Cuba to the amount of $0,000 to $7,000 per month in 
provisions, and the demand for manufactured articles was rapidly 
increasing'; all of which ceased suddenly when the treaty was abro- 
gated. We are sure that our trade would have increased threefold in 
a few years had we had time to demonstrate all its advantages to our 
correspondents. 

13. We are firm believers in the reciprocity principle with Spanish 
America, but not with European countries. 

We omitted in the proper place to state that the Eepublic of Salvador 
has recently imposed a tax (additional to the duties) of 75 cents a 
cental (100 pounds) on all imported goods, including coal, so that a ton 
of coal of 2,210 pounds, that cost — say, bituminous coal — about $2.05 at 
the railway pier in New York Bay, pays $16.80 tax, equal to $8.40 
United States gold. All the chief products of that country are admitted 
to our country free of duty. 



Rothschild Bros, d; Co., New Yorlc. 

2. Importers of buttons, agents for Jacquot & Co.'s blacking, and 
several pharmaceutical products. 

3. Yes; France, Germany, Austria, England, Italy. 

4. Yes; particularly Canada. 

5. Canada, changing its tariff rates without due notice, has entailed 
severe losses upon our firm. We believe that this should be considered 
in the next commercial treaty with that country. 

6. Canada raised the duties on goods that we actually had in transit, 
and invoices for which were already in the hands of our Toronto office. 

7. Y r es ; import orders had been taken on goods, and the changes, of 
course, entailed considerable loss upon us. 

8. Importations in 1890 were stimulated by the McKinley tariff, and 
since that time imports have been much less. 

0. In consequence of the foregoing (No. 8) prices had to be consider- 
ably increased, and everything in our line was selling much higher than 
at the present time. 

10. We have no chance with England and other countries, and can 
not compete with them on imported merchandise. This is due to the 
fact that we are not allowed to break bulk and also owing to the better 
shipping facilities, etc., enjoyed by those countries, and which we do 
not possess. 

11. We are unable to compete with foreign merchants, either in qual- 
ity or in price, for the reasons stated in the foregoing (No. 10). 

12. We have had no actual experience, and can not state. 

13. We have no experience, as stated, but it is our individual opinion 
that trade with foreign countries, particularly those lying near our 
own, could be increased to a great extent by reciprocity treaties. 

In reply to your invitation, we would suggest, as merchants of over 
forty years' standing, that in our opinion the present tariff is a fair one 
and we believe it would be in direct opposition to the commercial inter- 
ests of this country and the American people to inaugurate any agita- 
tion in the line of tariff revision, whether for higher or lower duties. 
We believe it would thoroughly unsettle business, induce dissatisfaction 
among all classes, and militate against us abroad. 



518 EECIPROCITY STATEMENTS. 

A. M. Seixas, New York. 

2. Export aud import commission business. 

3. Cuba, Puerto Rico, Trinidad (West Indies), Venezuela — princi- 
pally Spanish colonies. 

4. Constant efforts to extend the trade by correspondence and by 
travelers. 

5. In said Spanish West Indies Islands discriminating duties in favor 
of Spanish products as against those from this country restrict and 
prevent the extension of business with them. Such restrictions may 
in great measure be removed by reciprocity treaties like those made by 
the late Mr. James G. Blaine. The liability of all merchants here to 
absurd and very grievous custom-house fines in the Spanish West 
Indies are to be complained of, as they are inflicted even for evident 
clerical error on goods entitled by law to free entry, without appeal 
except to the authorities at Madrid, entailing time and heavy expense. 
A correction of such an evil should be insisted upon in future commer- 
cial arrangements with Spain by the simple devices of allowing to the 
importer forty eight hours after arrival of vessel for post-entry correc- 
tion of errors and of the remission of fines to him upon his offering to 
pay and paying the full duties, if any, according to custom-house tariff 
in force at the time. On goods entitled to free entry, however, no fines 
whatever to be imposed for errors. 

6. About a year ago the lower duties in virtue of the reciprocity 
treaty were again raised in Cuba and Puerto Rico, on abrogation of 
same. 

7. Reduction of the customs duties would without doubt increase 
trade with the said Spanish-speaking countries, as thereby would be 
more equalized the laid-down cost of the American and Spanish prod- 
ucts; also the cheapening of cost would increase consumption. 

8. The volume of business has decreased through abrogation of the 
reciprocity treaty and through too low prices of sugar. 

9. Prices of American provisions are very cheap now. Those of 
sugars, molasses, and coffees are at present on a paying basis. 

10. Our Spanish competitors enjoy the advantage of greatly discrimi- 
natory duties in their colonies. On manufactures of iron and cotton, etc., 
Great Britain and the Continent are lower in prices than the United 
States, notwithstanding the fact that we are the chief raisers of cotton, 
which is transported to Europe to be reexported in its manufactured state 
thousands of miles, and that we have abundance of coal, etc. One of 
the largest concerns in this country, on furnishing me recently with esti- 
mates for railroad-bridge work and for rails, said, at the same time, that 
Europe could beat him in prices. On ocean freights, I doubt whether 
foreign competitors can furnish lower rates to South America and West 
Indies, especially W T est Indies. 

11. Quality of American manufactured goods is generally superior to 
that of Europe; prices, however, are, as a rule, lower in Europe. 

12. The effect of the reciprocity treaty of 1890 was favorable to the 
export trade of the United States, for it increased it; but on the con- 
trary that of its repeal, because it reduced it again. This is based on 
actual experience. 

13. I favor the application of the reciprocity principle, the importing 
country to be debarred from increasing internal taxes on merchan- 
dise imported under its provisions with the object of thereby counter- 
balancing the loss of customs revenue caused thereby. 



RECIPROCITY STATEMENTS. 519 

Eunhardt & Co., New York-. 

2. Foreign commission, both export and import. 

3. Principally Venezuela, Colombia, and Haiti. 

I. We are continually making legitimate direct efforts to extend our 
foreign trade. The means employed are extension of credit facilities 
to the merchants in Venezuela, Colombia, and Haiti; close study of their 
needs and the employment of competent representatives to travel in 
those countries to post us on such needs and conditions of trade there. 
Through these efforts we have been successful, having gradually and/ 
continually increased our trade with them. 

5. We are not aware of any discriminations or obstacles in the laws 
or customs regulations of those countries. To the best of our knowledge 
we enter their markets on an equal footing with other foreign nations. 

6. We know of none. 

7. The nations will buy their imports in the cheapest market to them ; 
the greater their tariff reductions on American goods, the greater will 
be their purchases here, other conditions remaining the same. 

8. Eighty per cent increase. 

9. Provisions are about the same; they have varied considerably dur- 
ing the last six years, according to market fluctuations; hardware, 
manufactures of iron, dry goods, and most all manufactured goods have 
steadily declined and are now considerably lower in price. 

10. None. Our main exports being provisions we have a decided 
advantage over foreign competitors. Transportation charges are also 
considerably in our favor, owing to our closer proximity. European 
manufactured goods are put in those markets at lower prices and to a 
greater extent, mainly because the European merchants and manufac- 
turers, not having such an advantageous home market as the United 
States merchants and manufacturers, have cultivated the foreign trade 
and cater to the foreign markets in every way possible. Our experience 
has been that during hard times in the United States American man- 
ufacturers and producers seek customers in foreign countries, and with 
returning prosperity to the United States abandon the markets obtained 
during depressed conditions, finding the home market temporarily 
much more lucrative than markets where they have to compete with 
other nations. 

II. Leaving provisions aside, where we, of course, have greatly the 
advantage, we find that in prosperous times in the United States we 
can not compete in prices with the more stable markets abroad. As to 
quality we find the productions here, when they are known, answer the 
purpose fully as well as productions of other countries. The main 
difficulty we have experienced has been that manufacturers in the 
United States only desire foreign business when home conditions are 
depressed, and that they do not cater to foreign demand as to its minor 
requirements, style, form, packing, and other details which are thor- 
oughly studied and conformed to by European manufacturers. The 
general idea among the manufacturers here seems to be that what goes 
in the United States should go anywhere else, failing to comprehend 
that the way to obtain a permanent foreign outlet is to conform to the 
peculiarities and predjudices of the people with whom they wish to trade. 

12. The general effect of the reciprocity treaties of 1890, in our opinion, 
was unfavorable to the trade of the United States. Our own trade with 
the three countries we deal with was not materially affected, although 
they were the three countries against which the discriminating duties 



520 RECIPROCITY STATEMENTS. 

were enforced. In the ease of Haiti; the volume of export was just as 
great proportionately during that time as though the discriminating 
duty was not enforced against her. Her production of coffee was sold 
without any disadvantage in Europe, the same as it has been previous 
to such discrimination, and is now, after the discrimination has been 
taken away. With Venezuela and Colombia, those countries found 
that they needed our food products, and continued to buy them here 
the same as they did previous to our discrimination against their coffee, 
and have since its withdrawal. These latter countries unquestionably 
suffered through the duty of 3 cents being put on their coffees in this 
market. The United States being their main outlet for their coffees, they 
had to seek new markets, and their coffee was sold in Europe much 
below its intrinsic value. While they suffered loss through this, the 
United States was caused a corresponding and even greater loss, inas- 
much as the diversion of the coffee of those countries to Europe forced 
this country to enter the Brazil and other markets in a larger scale than 
previously, and led to an enhancement of the value for all kinds which 
replaced the coffee discriminated against in our market. From those 
countries our own business was somewhat detrimentally affected through 
our having to reship and sell in Europe goods consigned to us and dis- 
criminated against here, and to pay commissions abroad for the sale of 
those goods, which, under normal conditions, we should have retained 
here. Undoubtedly we gained some benefit by increased exports to 
some of the countries with which we entered into reciprocity, but our 
gain was not at all commensurate with the advantages this country 
conceded them. We feel satisfied that had no treaties been in force our 
export trade would have been larger than previously (during the time 
they operated) on account of the depressed conditions ruling here and 
the low prices of all products, both food and manufactured. 

13. We favor the application of equitable and, if possible, general 
reciprocity. We do not favor the enactment of a general law authoriz- 
ing the President to put such treaties into effect with power to abro- 
gate them at his discretion, since this would expose us to sudden 
changes that are always detrimental to commerce. 

The foregoing replies are based on a long experience in the export 
trade, and are confined strictly to the facts as we have found them. 
The trade with foreign countries is a difficult and complex business, 
needing application and study to a greater extent than the home 
market. In the fifty years' experience of our house competing in mar- 
kets controlled by European capital and industry, we have not felt the 
necessity of governmental interference or assistance. We have found, 
on the contrary, that such interference, whether it be in the nature of 
subsidies to vessels or so-called reciprocity treaties of the type recently 
experienced, has been detrimental to legitimate business transactions. 
The export trade with our neighbors to the South, in our opinion, can 
not be acquired by coercion nor by political measures formulated 
through the exigencies of party politics, and to satisfy the demands of 
classes utterly unconversant with the primary requirements and con- 
ditions of the countries with which they wish to trade. The primary 
question in the markets desired is the question of credits. They are 
principally debtor countries, and need foreign capital to do their busi- 
ness. They obtain these credits largely in Europe, and naturally their 
business goes to the people who provide them with the funds, especially 
so if, in addition the people who furnish the funds, cater to them in every 
way imaginable, manufacturing and producing for them steadily in 
such styles and forms as their needs require, and generally doing every- 
thing in their power to hold their trade as a desirable permanent 



RECIPROCITY STATEMENTS. 521 

acquirement. As statistics show, this country has been making prog- 
ress in those countries, and must continue to do so. We do not think 
that it can be forced. It is natural that markets controlled for so long 
a time by European countries can only be entered gradually, as we 
understand more fully their requirements, and as the necessities of our 
home producers compel them to conform to such requirements and be 
satisfied with profits, not based on the standard of the United States 
markets, but on the standard satisfactory to their competitors abroad. 
We think our home producers are fully competent to attain those mar- 
kets in time and hold them, but the process will be a gradual one, to be. 
attained only by close application to the needs of the markets desired, 
and by our ability to extend the credit facilities now accorded them in 
Europe. 

The consular service that we have formerly had with foreign coun- 
tries has been much inferior to that of European nations, and we think 
our commerce would be greatly benefited if a better class of men should 
represent us in those positions. It seems to us the prime requisite for 
such an officer should be some knowledge of foreign commercial busi- 
ness and sufficient intelligence to discern the movement of commerce 
in the countries he is accredited to, so that the benefit of full informa- 
tion from him can be at the disposal of his home Government and its 
merchants. 



Theo. Herrmann, New York 



2. General commission business. During the last twenty years I have 
given special attention to the purchase of American (United States) 
manufactures for export. 

3. Mexico and Costa Rica, mainly; also with Guatemala, Uruguay, 
and Manila. 

4. I have for thirty-eight years been connected with the Spanish- 
American trade. During 1858 to 1867 I resided in Mexico, and since 
then in New York. 

5. There are no special discriminations against trade with the United 
States in any of the countries with which I am connected in business 
as far as I know. The duties imposed are, in my opinion, needed for 
revenue purposes and are by no means arbitrary imposts. 

6. No changes have been made of sufficient importance to influence 
trade materially. In Mexico the duties are paid in silver, which de- 
clined in value about 30 per cent during the last six years, and the 
decline in the value of the Costa Rica bank currency, in which Costa 
Rica duties on imports are paid, was still heavier, while the nominal 
imposts remained in their majority unchanged, and were in Mexico, in 
some instances, even reduced. It is natural, however, that the depre- 
ciation of the currency influenced imports unfavorably, especially in 
Mexico, where a vigorous home industry received additional protection 
by this depreciation. 

7. I do not consider an important reduction of such duties of practical 
possibility. 

8. I notice a reduction in exports of cotton goods to Mexico, owing 
to a more favorable competition of home manufacturers. There is no 
material change, but rather an increase, in articles not produced in 
Mexico. Exports to Costa Rica were, I think on the main, increasing. 

9. Generally speaking, I think that prices are lower than in 1890, but 
it is impossible to follow their range with the great variety of articles. 

10 and 11. We can only export such articles of manufacture where 



522 



RECIPROCITY STATEMENTS. 



machinery supplants the human hand very largely and which have a 
large home consumption. Wherever special adaptation to the needs 
of foreign countries is required the cost is increased out of proportion 
with European manufactures of the same kind, owing to the higher 
wages paid in the United States, and no change is, in my opinion, likely 
to occur in this respect nor desirable for the nation as a whole. 

Freights to Mexico and Gosta Eica are on a competitive basis with 
those from Europe. For the west coast of these countries some goods 
are still shipped from here to Europe in order to be sent round Cape 
Horn on sailing vessels, which would otherwise go partially empty. 

12 and 13. I think that the principle of reciprocity can only be bene- 
ficial, but without forcing the policy upon foreign countries beyond the 
representation of mutual interest. 

I can only answer your questions in a general way, as any details 
would require close investigation to be of any practical value. When 
we observe our own large imports of European manufactures, notwith- 
standing our high duties, it must only be a matter of surprise that our 
exports of manufactures are not smaller than they really are. We sup- 
ply the wants of the masses both at home and abroad, but must neces- 
sarily stand back wherever the needs of the so-called better classes 
come in question, owing to the larger proportion of patient, manual 
labor which they necessitate. 

Comparison of the movement of silver during the calender years 1894 and 1895. 
[In millions of fine ounces.] 





UNITED STATES. 








1894. 


1895. 


Imports : 


24.30 
3.59 


34.10 




3.26 








Total 


27.89 


37.36 








Exports : 


50.80 
.69 

20.00 

.82 

2.29 


58.00 




.66 




19.58 




.78 




3.80 








Total 


74.60 
46.71 


82.82 




45.46 










27.89 


37.36 







GREAT BRITAIN. 

Imports : 

United States 

Erance, Germany, and Belgium : 

Other countries, including ores 

Total 

Net imports 

Silver exported 

Exports : 

Asiatic countries 

Continent of Europe 

Other countries r 

Total 



55.80 

9.43 

38.28 



103. 51 
9.84 



93.67 



77.31 

10.58 

5.78 

93.67 



60.81 

7.23 

25.98 



94.02 
16.27 



77.75 



48.63 

22.73 

6.39 

77.75 



Exports to Russia during 1895 exceeded those of 1894 about 9,300,000 ounces, while 
France took 7,000,000 more than in 1894. 



RECIPROCITY STATEMENTS. 



523 



Comparison of the Mexican coinage and exports of Mexican dollars during the fiscal years 
ending June 30, 1878 to 1895. J 

[Values in millions of Mexican dollars ; and annual averages, -when stated, in periods.] 





Coinage. 


Exports. 


Eetained. 


1878-1882 


23.61 
25.83 
25.20 
27.17 
30.18 
27.63 


15.21 
23.66 
21.34 
27.17 
17.38 
17.08 


8.40 


1883 1887 


2.17 


1888-1892 


3.86 


1893 




1894 


12*. 80 


1895 


10.57 







1 Data kindly furnished by Mr. H. Wilmanns, Mexican consul, Berlin. 

Production of silver in the Western World. 

[In millions of fine ounces.] 





1894.1 


1895.' 




54.07 
47.04 
33.40 
18.07 
17.78 


54.00 




50.00 




28.00 




14.00 




17.00 






Total 


170. 36 


163.00 







'As stated by Director of United States Mint. 2 General indications; subject to correction. 

Distribution. 



1894.1 



1895. 2 



Asiatic countries, shipments from Great Britain and United States 

United States, for industrial purposes 

Mexico, increase of circulation and reimport 

Great Brit ain. net imports 

France, net imports of bullion and ores, adding borne production.. 

Bussia, net imports of bullion and borne production 

Austria-Hungary, net imports of bullion and borne production 

Germany, amounts smelted in Germany less net exports of bullion 
Other countries 

Total 



97.31 


68.21 


7.36 


8.54 


11.00 


9.00 


9.84 


16.27 


9.69 


16.50 


11.32 


20.00 


5.08 


5.00 


7.91 


8.00 


10.85 


11.48 



170. 36 



163. 00 



'Official figures. 



2 Estimates; subject to correction. 



There were undoubtedly about 10,000,000 ounces speculatively held 
in Great Britain at the end of 1895, while it is questionable whether 
the larger imports of France during 1895 are for speculative purposes, 
or in connection with coinage for her Asiatic possessions. 

Bussia is evidently preparing a subsidiary coinage in order to with- 
draw small notes. 



524 RECIPROCITY STATEMENTS. 

Distribution of silver since the cessation of German sales. 
[Annual averages in millions of ounces, and gold values in millions of dollars.] 





1881-1885. 


1886-1890. 


1891. 


1892. 


1893. 


1894. 


1895. 




GO 

© 

PI 

p 

C 


© 

P 

> 


C6 
© 



O 


© 
P 


m 

<D 
O 
P 
P 

o 


S 

■a 

> 


o 
P 
Pi 
O 


<5 
p 


© 
o 
PI 

O 




to 

<C 

o 

p 
p 
o 


93 

> 


O 


i 


Purchases of United States for 


22 
26 

14 

28 


25 
29 

16 

31 

101 


28 
34 

14 

36 


27 
33 

14 

35 


54 
31 

13 

48 


53 
30 

13 

47 
143 


54 
49 

31 

31 

165 


48 
43 

27 

27 

145 


39 
44 

44 

43 

170 


32 
35 

33 

34 

134 










British India, excluding the Straits. 
Absorption by other Asiatic coun- 


40 
57 
73 

170 


25 
36 

46 

107 


27 
41 
95 
163 


18 
?7 


Industrial demand in the Western 
world, coinages in Europe, etc 


62 


Total 


90 


112 


109 14fi 


107 











In 1891 purchases of Spain and Portugal were an important factor 
of demand. Deliveries for United States purchases ceased on 5th 
November, 1893. 

It is unfortunate for the Mexican trade, and others whose interests 
require stability in the price of silver, that speculation took hold of the 
metal during 1895. The net exports from the United States compare 
as follows before and after the rise in price with the same periods in 
1894 (millions of ounces) : 



Period. 



January-March, 1894 
January-March, 1895 
April-December, 1894 
April-December, 1895 




While the increase in production is not heavy the rise in price 
stopped its gradual decline. 

A larger portion of the Mexican production found its way via the 
United States in 1895 than during 1894, while direct shipments to 
Europe were probably less, and the coinage will most likely also show 
a decrease, but a slight increase in the production appears to exist. 

Australasia will show a decrease of about 25 per cent in its produc- 
tion, the ores becoming poorer from year to year. 

Nothing can be said about South America until returns of the Ger- 
man and other continental smeltings are available. 

There is evidently a heavy increase in the consumption for industrial 
purposes, but the large balances not absorbed by Asiatic shipments 
during the last two years, and especially during 1895, are astonishing. 

The Asiatic absorption continued during January-February on the 
large scale as witnessed in 1894, but declined to a monthly average of 
about 5,000,000 ounces since then. 

It appears to me that the extraordinary movements which held silver 
in a better position than could be reasonably expected since the closure 
of the British-Indian mints and the cessation of purchases by the United 
States can hardly continue much longer. 

The movement in the United States during the month of January, 



RECIPROCITY STATEMENTS. 



525 



1896, and for the seven months, July 1, 1895, to January 31, 1896, com- 
pares as follows with the same periods of the previous year: 





[Millions of fine ounces.] 












January— 


Seven months end- 
ing January — 




1895. 


1896. 


1895. 


1896. 




6.25 
2.97 


7.31 
3.54 


6.05 
2.56 


7.42 




3.39 










3.28 


3.77 


3.49 


4.03 







Shipments from Great Britain to Asiatic countries from January 1 to 
February 6, 1896, and during the same time in the two previous years 
were: 

[Millions of fine ounces.] 





1896. 


1895. 


1894. 




2.32 
.35 

.40 


4.76 

3.54 
.38 


6.63 


China 


1.48 


The Straits 


.55 






Total 


3.07 


8.68 


8.66 







San Francisco shipments, including steamer sailing on February 7, 
amounted to 2,300,000 ounces, of which about 1,600,000 ounces were 
Mexican dollars. 



Horace W. Calef, Neic YorJc City. 

2. Tallow, grease, lard, fertilizers, vegetable and animal oils. 

3. Indirectly with Europe, Mexico, Central and South America. 

4. No. 

5. Believe reciprocity the only practical thing. 

6. Some concessions to manufacturers in tropical countries amount 
to monopoly. 

7. Can not say; probably it would aid materially. 

8. Much less as far as foreign trade is concerned. 

9. Over 25 or 30 per cent lower. 

10. Australia and South America animal fats and Egyptian cotton 
oil have until lately been lower than our rates here. 

11. Favorably now, though labor and interest cost more here. 

12. Favorable, as far as I know. Can't give details. 

13. Yes. 



J. M. Ceballos & Co., New York, 

2. General commission and shipping business, particularly in the 
importation of sugars from all countries, especially from Cuba; and in 
the importation of olives from Spain. 

3. Mexico, Ecuador, Guatemala, but more extensively with Cuba and 
Spain. 



526 RECIPROCITY STATEMENTS 

4. We have endeavored to extend our foreign trade, particularly with 
the American Republics, by sending traveling agents, but with very little 
success. 

5. We find that the present ad valorem duty, especially regarding 
sugar and olives, if it does not restrict trade, at least it hampers it 
very much, because it is impossible to make any exact calculations 
as to what the duties on this merchandise will be on account of the 
appraisement made here varying very much, particularly so in the case 
of sugar. The custom-house rules are to take the highest market in 
the country from which the sugars come ; for instance, on sugars com- 
ing from Cuba, they take the market price in Havana, which, owing to 
the situation, always demands higher prices, especially by purchases 
for Spain. The duty in this country being fixed on the market value of 
Havana, the sugars from other ports have to pay on much higher prices 
than those at which the sugars were sold at port of loading. 

In order to obviate all this difficulty, we would suggest a specific duty 
of so much per pound on sugars testing up to 90 degrees, then increase 
per degree up to 98, with still another increase on sugars going over 
No. 16 Dutch standard. 

In the case of olives, a specific duty according to weights would also 
help trade. 

6. As far as we know no change has taken place. 

12. The reciprocity treaties of 1890 were very favorable to the export 
trade of the United States, especially with Cuba, the exportation to 
which country increased considerably during the years that the reci- 
procity treaty was in force. 

13. We do favor the application of reciprocity principles to future 
tariff legislation, and also authorizing the President to negotiate reci- 
procity treaties with American countries south of us. 



The Dumont Company, Neiv York City. 

2. Exporters and importers, and foreign publishers of El Anunciador. 

3. South and Central America, Mexico, and the West Indies. 

4. Yes; all we could, but fe]l off since reciprocity was abrogated. 

5. Discriminations in shipping and banking facilities. 

6. Many, especially Brazil. 

7. Double it in certain articles. 

8. Decreased. 

9. Lower by about 20 per cent. 

10. By having direct lines of steamships and direct exchange, and 
better commercial facilities in every manner. 

11. In most all articles of necessity we can jxlace better grades at an 
equivalent. 

12. Most favorable. If the practical ideas of James G-. Blaine had 
been carried out as they were intended, we should have had an immense 
impetus. 

13. Yes; by all means, if based upon Mr. Blaine and his advisers' 
ideas. 

We need a bank where we can save the exchange on London. We 
need' direct steamship lines, with or without subsidy. And further, 
we need a continuous price list of goods for foreign countries without 
being tangled every year or so by tariff legislation ; and further, we need 
as a body to visit these foreign countries and consult with them, as 



RECIPROCITY STATEMENTS. 527 

they did with us during the Pan-American convention, and to send 
these people goods as they need them and not as we make them. For 
instance, if they need an octagonal book, make it j or a chair with five 
legs, make it. 



Elbert & Gardner, JSfeic York. 

2. Exporters of cotton-seed oil and corn or maize oil. , 

3. Our business is exclusively with European countries — chiefly 
France, Belgium, Holland, Germany, Sweden, and Norway. 

4. We are constantly making efforts to extend our trade in these 
countries — chiefly by appointing selling agents at all larger points where 
there is some promise of business. Secondly, by furnishing these with 
copious samples of the above products. Third, by keeping these agents 
advised of market fluctuations here by means of cables and letters. 

5. We are not aware of any over discriminations against the oils 
handled by us; but in the case of Germany, which offers a large field 
for the sale of American cotton oils, as well as maize oils, the duty is 
certainly excessive in the case of edible cotton oils upon which a duty 
of 8J cents per gallon of lh pounds is assessed. Again, in the case of 
maize or corn oil, the export of the article to Germany is not possible 
at present, because the German customs administration classes this oil 
as among those "not specifically enumerated," and levies a duty of 8^ 
cents per gallon of 7£ pounds. Tbis duty is prohibitive. Maize or corn 
oil is not used for edible purposes, but in the manufactures, and it is 
respectfully suggested here that by due representations of the facts the 
German Government may be induced to assess corn or maize oil at no 
higher rate than nonedible cotton oil, which latter pays a duty of, we 
believe, 2f to 3J cents per gallon of 7£ pounds. 

6. The only important change in foreign duties on our articles has 
been in Germany, where, in 1894, the duty on edible cotton oils was 
raised to 8J cents per gallon of 7£ pounds from 3J cents per gallon. 

7. The removal or reduction of customs duties levied on cotton oil and 
maize oil by Germany and France would undoubtedly give the manu- 
facture and export of these productions a great increase, as natural con- 
ditions and cost of production favor the American manufacturer with 
anything like a fair show in their selling markets. It is chiefly in Ger- 
many and France where the reduction or removal of duty would be of 
the greatest benefit to American interests. 

8. Our present firm was not in existence six years ago, but as we 
have been in this same line of business for many years, we beg to state 
that the exi>ort business in these oils is larger than it was in 1890, but 
has in no way kept pace with the growth of the manufacturing interests 
in these articles; in other words, the domestic distribution in the case 
of cotton oil has probably increased 50 to 60 per cent since 1890, while 
the increase in the export business, chiefly owing to duties imposed by 
foreign nations, has been comparatively insignificant and disappointing. 
Corn or maize oil production began only in 1892, so that no comparison 
is possible as regards this article. 

9. The present selling prices of cotton oil are about 17 per cent lower 
than they were on the same day in 1890, but for the entire season of 
1895-96 they will average about 10 percent lower than those of 1889-90. 

10. We do not consider that our foreign competitors have any advan- 
tages over us in cost of production or in transportation charges, except- 



528 RECIPROCITY STATEMENTS. 

ing in their own respective countries where the transportation charges 
are naturally all against the American exporter. 

11. It is somewhat difficult for us to answer on this point; at any rate, 
cotton oil made in the United States is superior to cotton oils made in 
England or elsewhere. As for the prices, they are largely regulated 
by our home demand for the oil; and when that is supplied we have to 
meet foreign markets on their own terms and prices in order to market 
our surplus. 

12. The reciprocity treaties of 1890 were favorable to our line of 
export business, and we consider them a step in the right direction. 

13. We strongly favor the application of the reciprocity principle in 
our dealings with foreign nations, and especially with Europe, where our 
fields of operation have from year to year become more circumscribed. 



W. R. Grace & Co., New York. 

2. Import and export. 

3. With the South American countries, especially Ecuador, Peru, 
Bolivia, and Chile. 

4. Yes; by cooperation to the establishment of a direct line of steam- 
ers from New York to the South Pacific Coast, with regular sailings 
every forty days, at present, which will be changed to thirty days as 
soon as the new steamer now on the stocks is completed. 

5. None. 

6. None of importance. 

7. Would increase the exportation of goods not produced or manu- 
factured in that country. 

8. Larger. 

9. Generally lower. 

10. Lower wages. 

11. American manufactures generally take first place. 

12. Countries we deal with made no reciprocity treaties, 

13. No. 



0. N. Bliss, New York. 

My own experience has been slight. I would say, however, that when 
the legislation first went into effect we initiated considerable business 
with Brazil; it did not really amount to very much, but it indicated 
possible results of consequence. That business has declined consider- 
ably since the repeal of the reciprocity legislation. 



A, Bennett & Co., New York City, 

2. Apples, potatoes, onions, oranges, and pineapples. 

3. Bermuda, Cuba, Canada, British Isles, and Belgium. 

4. Yes; usual course buying and selling; fair success. 

5. No discrimination — open to criticism; duties in Cuba, if lower, 
would aid us. 

6. No changes except in Cuba, where duties are similar to those 
before reciprocity treaty. 



RECIPROCITY STATEMENTS. 529 

7. In Cuba; no duties, or lower duty, would help export of potatoes; 
during reciprocity treaty shipments were very large; Cuba was our 
largest buyer of American potatoes, exceeding all other countries by 
long odds easily — Cuba 10 barrels to 1 barrel to others. 

8. Volume as to packages, about same; as to value, safely one-half 
less. 

9. Prices, apples about same; potatoes, prices 10 cents bushel (00 
pounds) is now paid to farmers. Six years ago 50 to 60 cents was regu- 
lar price. Onions same as potatoes. Trend of prices is downward. 
Traders get no profit, consequently risks are greater; the road via fail- 
ure is more apt to be chosen. / 

10. Prices formerly were lower in foreign countries ; ours are now 
below all. English freights are lower than American for similar 
service. 

11. American apples equal any ; American potatoes and onions, qual- 
ity not as good as some others. 

12. Eeciprocity increased the trade to West Indies largely. Exam- 
ple: Ward's steamer often could not carry all freight offered, even with 
more steamers running; during last year room on these ships is more 
than abundant, and steamers are less. 

13. If through the application of reciprocity we escape duty, yes. 



Coates Bros. j Philadelphia, 

As we are not " engaged in the manufacture of various lines of mer- 
chandise that enter into the export trade," we can only acknowledge 
your courtesy in sending us the inquiries which are evidently intended 
only for manufacturers to answer. We may add that as our customers 
are woolen mills, we .are especially interested in their welfare, and that 
it is vital that they be protected in their home market. It is also evi- 
dent that both wool and woolens are in a very depressed condition under 
the Wilson Act, making wool free and reducing the duties on woolen 
goods, and unless both industries soon have a proper protection, our 
wool- growers will be ruined and our manufacturers become continually 
more crippled. 



Lawrence Johnson & Co., Philadelphia. 

Our firm is Lawrence Johnson & Co., No. 209 South Third street, 
Philadelphia. We are importers and exporters, principally exporting 
American raw products, such as grain, petroleum, etc., which we sell 
direct to foreign dealers. 

Portugal has heretofore used American petroleum exclusively, and 
also mainly used American wheat. Quite recently a treaty has been 
concluded between Portugal and Kussia, and this treaty has been pub- 
lished in a Lisbon newspaper, called Commercio de Portugal, under 
date of February 7, 189G, a translation of which article we hand you 
inclosed. Among the articles specially treated in this agreement, you 
will note Russian petroleum is granted a duty of 46 reis to the liter, 
which is the equivalent of 57 reis per kilo. American petroleum has 
to pay a duty of 67 reis per kilo, and consequently is henceforth to be 
discriminated against to the extent of 10 reis per kilo in favor of Rus- 
sian oil. Unless the United States can promptly obtain the same con- 
H. Pep. 2263 34 



530 RECIPROCITY STATEMENTS. 

ditions the Portuguese market for petroleum must inevitably be lost to 
American oil. Eussia does not appear to have obtained any special 
concessions for grain, but there is no apparent reason why this should 
not also be granted, and thus deprive us of Portugal as a grain market 
also. 

As a principle, we consider favoritism toward any one nation contrary 
to general commercial interests, and reciprocity in this sense should 
only be undertaken where fair and equal treatment for our products, in 
competition with other nations, can not be otherwise obtained. 

In reply to your request for general information, we would say that we 
find the system of ad valorem duties, instead of specific duties, injuri- 
ous to trade and objectionable for the following reasons, viz: 

First. The system is more expensive to the Government to maintain 
a force to detect fraud. 

Second. It is a premium to fraud, as dishonest importers profit by the 
system to the detriment of honest competitors. 

Third. It is unfair to importers who may contract abroad at low prices 
for large stocks in advance and who, when honestly invoicing the mer- 
chandise at actual cost to them, may be subject to questions or accusa- 
tions of incorrect valuation by customs officers. 



Patterson, Ramsay & Co., Baltimore. 

2. Steamship agents and brokers. 

3. English, Belgian, South American, and Mexican. 

4. We are making continuous efforts to extend our foreign trade by 
personal application, and have met with considerable success. 

5. We find a very serious drawback to our trade with Belgium owing 
to restrictions which have been put on the importation of American 
live cattle into that country. These restrictions apply solely, we under- 
stand, to American cattle. Canadian cattle have been allowed free 
entry, and we understand also that cattle from the Argentine Eepublic 
are also allowed free entry. We had a valuable trade in this branch of 
business before these restrictions. We have made every effort through 
the United States minister at Brussels to have these restrictions with- 
drawn, and unless retaliation in some manner is brought about, we can 
not suggest any other means to have these restrictions removed by 
the Belgian Government. 

6. We do not know of any particular changes in the tariff of the 
countries which have affected the exports of the various products of 
this country from this port, beyond the above-mentioned cattle traffic, 
and the abrogation of the reciprocity treaty between this country and 
Brazil, which took effect on the 1st of January, 1895. Previous to the 
abrogation of this particular treaty, immense exports of flour and pro- 
visions were made from the United States, but since that time the 
exports of flour, especially to the port of Bio Janeiro, to a very large 
extent, have decreased, the Argentine Eepublic having captured this 
particular branch of trade for Bio. 

7. As there are no customs duties imposed in the countries with which 
we trade, except Mexico, there would, of course, be no duties to remove. 
As far as Mexico is concerned, we do not think the customs duties inter- 
fere in any respect with the importations from the United States, the 
duties being paid by the consumers in Mexico. 



RECIPROCITY STATEMENTS. 531 

8. The volume of our business compared with that of six years ago 
has probably increased about 20 to 25 per cent. 

9. We are hardly in position to answer this query. We principally 
traffic in freight room, and the value of this has steadily decreased in 
its average, owing to the excessive competition of the foreign carrying 
trade. 

10. Our foreign competitors are simply the producers, principally of 
the Argentine .Republic, who resell the grain and flour exports in this 
country in the European markets, and thus divert trade from the 
United States. / 

11. We can only compete with foreign countries, not foreign mer- 
chants, in our line of business when the exporters of this country are 
able to compete with the exporters of foreign countries. 

12. We can not say that we are in position to answer this query 
faithfully. 

13. Reciprocity as a principle is a good one in its way, but we favor 
free trade much more heartily. Of course, where the latter can not be 
obtained, reciprocal treaties are better than nothing. 



Kolm, Weil & Co., New Orleans, 

2. Jobbers of hats and trunks. 

3. We sell to British and Spanish Honduras, Mcaragua, Costa Eica, 
Guatemala, and in the free zone of Mexico; also United States of 
Colombia. 

4. We send price lists (with illustrations), and traveling agents with 
samples, to all of above countries, principally confining our efforts to the 
Seacoasts. 

5. Naturally the customs duties, particularly those of Mcarauga and 
Costa Eica, tend to operate as restrictions, but we do not know of any 
discriminations against goods from the United States. 

6. Those referred to in No. 5, inaugurated January 1, 1894, by Costa 
Eica, and January 1, 1896, by Nicarauga, have greatly diminished our 
business, as some of the rates are virtually prohibitive. 

7. We think a return to former rates of tariff would help our busi- 
ness with all of these countries. 

8. About the same; perhaps a trifle better. 

9. They are lower. 

10. In hats we have great difficulty to compete with English and 
German goods, which are cheaper, for the reason our American manu- 
facturers who supply us have to pay import duties on furs and on many 
trimmings used. 

11. We can manage to place some of our goods on account of closer 
proximity to the markets and originality of our styles. 

12'. The reciprocity treaties had no direct effect on our trade. 

13. We believe in a policy of reciprocal trade relations as free from 
restrictions as possible, with a due regard to protection of such indus- 
tries as require it. In our opinion, all raw materials needed for the pro- 
duction of the goods we desire to sell to foreign countries should be free, 
so as to enable our manufacturers to compete with all nations. 



532 RECIPROCITY STATEMENTS. 

S. Oterij New Orleans. 

1. S. Oteri; Oteri Central American Pioneer Steamship Line (five 
steamers). 

I. Wholesale importer and jobber in fruits. 

3. We deal in Honduras, Nicaragua, and United States of Colombia. 

4. We are now making an effort to extend our trade to Bocas del 
Toro, United States of Colombia, by adding one or two more steamers 
to our line. 

5. No ; there are no customs laws or otherwise restricting our trade. 

6. None. 

7. We simply act as carriers of goods that are exported, consequently 
we are not interested. 

8. I consider my business 25 per cent larger than it was six years ago. 

9. The present selling prices compared with those of six years ago 
range 50 per cent less. 

10. The only advantage foreign importers have is that the importers 
here charter steamers mainly under the Norwegian flag. These steamers 
run with about half the expense that our American steamers run ; that 
is, in the payment of crews, rations, and in fact they are more economi- 
cal in every respect than the American. The above is the greatest 
obstacle we have to contend with in our business. 

II. We have no competion with foreign merchants. 

12. I am entirely ignorant of the reciprocity treaties that were made 
in 1890, consequently can not answer. 

13. Yes. 



Sussdorff, Zaldo & Co., New York 

2. Machinery and hardware. 

3. Cuba and Mexico. 

4. Yes ; with moderate success. 

5. No. 

6. In August, 1894, when the reciprocity treaty with Spain was abro- 
gated, American goods had to pay, when entering Cuban ports, a higher 
rate of duty than other countries, but early in 1895 this was changed, 
and we were put on the same basis as other countries. 

7. Very largely. 

8. In Mexico about the same; in Cuba 75 per cent less. 

9. They are lower. 

10. Chiefly lower rate of freights and longer credits. 

11. We believe we can compete with any country in quality and 
prices. 

12. Most decidedly it was favorable, and the repeal of those treaties 
caused by the changes in our tariff, principally in raw sugars, was, we 
consider, a very serious blow to the export business of this country. 
Our business with Cuba during the time that the reciprocity treaty 
lasted was nearly doubled, and had it lasted two or three years more 
we believe it w T ould have reached enormous figures. 

13. Certainly. 



JEJmilio Puig, New York. 

I beg to submit the following in connection with the provision and 
produce trade with Cuba. 

Under the last reciprocity treaty exportations of flour increased from 



RECIPROCITY STATEMENTS. 533 

50.000 bags of 200 pounds each per annum to over 800,000 bags. With 
the cancellation of this treaty the volume of this traffic was reduced to 
its original proportions. 

The volume of corn, beans, and potatoes exported also greatly increased 
during the life of the reciprocity treaty, only to fall back to their origi- 
nal figures with its abrogation. 

The reduction of duties on lard, hams, bacon, canned goods, etc., 
resulted in a material increase in this traffic. 

Statistics show that exports from the United States to Cuba were 
doubled under the reciprocity treaty, but these figures do not do jus- 
tice to the increase in the produce and provision trade, which directly 
interests the farmer, miller, and packer. 

I believe, in view of the friendly relations at present existing between 
this country and Spain, and the present condition of affairs in the 
island of Cuba, that a proposition for reciprocity would be acceptable 
to her, as at present the trade between the United States and the 
island of Cuba is all but paralyzed. 



Sussdorffy Zaldo & Co., Neiv York. 

In reply to your request of recent date for an expression of opinion 
on the subject of reciprocity treaties with foreign countries we beg to 
say that we are greatly interested in this subject and can hardly think 
of any measure that can benefit more the export trade of this country 
as a reciprocity treaty such as we had under the so-called McKinley 
bill. On account of that clause our business with Cuba was in a short 
time nearly doubled, and had it continued one or two years longer we 
believe that it would again have been doubled, for we were convincing 
them that this country could manufacture goods equally- as good, if not 
better, than those made in Europe and at prices that would allow us to 
compete. 

We can not think of anything more foolish than the cancellation of 
this treaty, for the business of thousands of American houses and man- 
ufacturers was badly injured, and we do not know of anyone who 
benefited by it. 

We therefore close this letter by repeating to you that we are heart- 
ily in favor of including a reciprocity treaty clause, such as we had 
before, in any tariff bill that this or the next Congress may pass, even 
if at present it be impossible to include Cuba. 



Varleton & Moffat, JSfew York. 

2. Our line of trade is in all kinds of manufactured goods for export. 
3.. We are in connection with Bast India, China, Japan, and South 
America. 

4. We are constantly making efforts to extend our foreign trade, and 
are fairly successful. 

5. We are not aware of any discriminations that prevent our doing 
business with any foreign country. 

6 and 7. We do not see how it is competent for us to attempt to 
change the tariff of other countries. 

10. The advantages that foreign competitors have over us is, that the 



534 RECIPROCITY STATEMENTS. 

raw material is in almost every instance furnished them free, while ours 
is heavily taxed. 

11. We can compete with foreign merchants in quality and price 
without any trouble. 

13. We do not favor the application of reciprocity, nor do we favor 
any legislative interference with commercial affairs. If Congress would 
give our manufacturers free raw materials and then let us alone to work 
out our own salvation, we are perfectly capable of competing with all 
the world in exports. But with the continual changes brought about 
by special pressure of special interests all commercial calculations are 
interfered with, and we can only ask the Congress of the United States 
to do as little legislating for the "benefit" (?) of business as possible. 
The business men of this country, in our opinion, are quite capable of 
managing their own affairs without the assistance of legislation, and 
the least we have of it the better. 



Walter Carr, New York. 

2. I handle beans, pease, and dried fruits largely, and incidentally 
other articles too numerous to mention. 

3. I deal directly and indirectly with the British Isles, France, Bel- 
gium, Germany, Italy, Austria-Hungary, etc. 

4. I have made effort to extend my foreign trade, but without much 
success. In my line prices are much of the time too high for export of 
domestic products and too low for the importation of foreign products 
with profit. Customs regulations of Cuba and most of the countries of 
continental Europe, notably France and Germany, militate against 
exports of many of our American products much more extensively and 
more profitably. Eemedy : Beciprocity. 

6. Senseless German regulations requiring chemical tests of our 
American evaporated apples have interfered considerably with the 
export of that article to Germany, where there is extensive consump- 
tion for our apple product. Can not speak intelligently of other obsta- 
cles to the extension of this branch of exports to Germany, save that 
the protection class there, as here, are doing all they can to reap tariff 
benefits at the cost of the masses. 

7. I am of opinion that proper treaties of reciprocity between this 
country and the West Indies, the countries of Central and South 
America, and of continental Europe, would greatly increase business 
in my line. The same would be true of the American British Posses- 
sions and also, in some respects, of Great Britain. 

8. My business in my special lines is not quarter what it was six 
years ago, due largely, in my opinion, to unwise tariff legislation and 
protection run mad. What is true in my case is also true of hundreds 
of merchants in this city to a greater or less extent. 

No important tariff legislation of value enacted by the McKinley 
bill occurs to me at the moment, save the reciprocity clause, injected 
after conferring with Mr. Blaine, and none by the so-called Wilson bill, 
save that of putting wool on the free list. The Wilson bill did immense 
harm to my line and many others by repealing the reciprocity features 
of the McKinley bill. Of course, both bills contributed many minor 
benefits, and, at same time, burdened the producing masses of this 
country with evils too numerous to describe in brief. This was partic- 
ularly true of the McKinley law. It threw much of our commerce with 



KECIPROCITY STATEMENTS. 535 

Europe and Canada into intolerably unnatural conditions. Our tariff 
relations with other countries are in such a mixed and unnatural state 
that there seems to be no remedy that would give large and quick 
relief. Increased protection would be like undertaking to cure a man 
who has beeu drunk thirty-five years by giving him increased supplies 
of alcohol, and a great reduction of duties all at once would operate to 
prostrate the same as depriving such a drunkard of all alcoholic stim- 
ulants at one stroke. The only remedy that occurs to me is to apply 
reciprocity as last as possible wherever it will least impair revenues, 
and when customs revenues are not enough, provide new ways anfl 
means, but not by issuing bonds of indebtedness. 

9. Prices in my line and inany others have not been so low and 
depressed since I860. I think about half what they were six years 
ago, on an average. 

10. Question 10 seems to me to involve too much to answer in brief, 
i. e., if I understand it. If it means our European competitors, who 
are pushiug their wares where we would like to push ours, cheaper 
labor may enter into some things (not all), better snipping laws, tariff 
rebates given by our Government, and older and better perfected busi- 
ness relations. 

11. In my line we can furnish much better quality than Europe, and 
as low prices as any country in the world, quality considered. What 
we want is an enlarged demand. There are, however, years when crop 
conditions here and abroad may reverse the usual order of things in 
these connections. 

12. The effect of the reciprocity treaties of 1890 was very favorable to 
the export trade of the United States; the repeal of them unfavor- 
able, especially so with Cuba, and would be just as noticeable with 
South American countries if we had in the past pushed our shipping 
and trade relations with them, as we might and probably would have 
done, only for being handicapped for several decades by bad tariff and 
shipping laws, making our wares and freights too high to compete with 
Europe. Cuba is a large market for our American beans and pease, but 
since the repeal of the reciprocity treaties the high Spanish duties 
have reduced the business to a very unimportant volume. The Cuban 
war disturbances have no doubt contributed somewhat to the impair- 
ment of trade. 

13. To question 13 I answer yes, most emphatically. 



East India Trading Company, Portland, Oreg. 

2. Imports: Coffee, tea, spices, tapiocas, rice, drugs, furs, etc. Exports: 
Flour, lard, dried fruits, timber, etc. ; but it is mostly an import business. 

3. India, Ceylon, Dutch Indies, Straits Settlements, China, Japan, 
central and west coast South American Republics. 

4. Yes, in the countries mentioned, principally by correspondence. 
With success, but one member of the company had previously lived for 
a considerable time in the Indies. 

5. Xot as regards countries at a distance, but such exists in our busi- 
ness relations with Canada. There is a discriminating duty of 10 per 
cent on all coffees and teas which are sent from the United States to 
Canada, whereas there is no duty charged on coffees and teas imported 
into the United States from Canada. This enables Canadian merchants 
and brokers to sell those goods here on the same footing as if they were 



536 RECIPROCITY STATEMENTS. 

selling in their own country, while the merchants here are prohibited 
altogether from selling those goods in Canada. This seems to us most 
unfair, and ought to be remedied. 

8. Have been in business only about four years. Our trade has been 
gradually increasing, but the commercial depression has made it impos- 
sible to make as much progress as would have been made had times 
been normal. 

9. Prices are all lower. 

11. In many articles of export can not compete. 
13. Yes. 



Williams, Richardson & Co., New Orleans, La. 

2. Wholesale dry goods and notions. 

3. Honduras and British Honduras. 

4. No. 

5. No. 
13. Yes. 

This house made an effort ten years ago to develop trade with the 
countries lying on the Gulf of Mexico, sending a traveler to Mexico, 
Honduras, British Honduras, Guatemala, and Colombia. The enter- 
prise was unsatisfactory and resulted in heavy loss. Our experience 
is that merchants in those countries do not wish to trade upon the terms 
given those at home; they do not know what it is to pay bills at matur- 
ity. They expect to buy, to pay with shipments of produce or exchange 
at sixty days, without regard to maturity of bills; to pay interest, or 
rather to have interest charged them at the end of each year; and so 
on, ad infinitum. They think if they consent to a charge of interest 
they may go on indefinitely buying, remitting less, and never settling 
to a point. This they have been allowed to do by their European cor- 
respondents, who are content with 6 per cent interest ; and they can not 
understand why American houses are not satisfied to do likewise. 

Our experience was unsatisfactory; we no longer solicit trade from 
Spanish America. 



W. Loaiza & Co., New York, N. Y. 

2. Commission merchants. 

3. Mostly with Mexico and a little with Guatemala, Salvador, and 
Costa Bica. 

4. Yes; by traveling through those countries once a year. 

5. We know of no discriminations or obstacles in the laws or customs 
regulations in any of the countries mentioned that restrict or prevent 
the extension of our trade. It is of course necessary in trading with 
them to obtain and study their customs regulations in order to comply 
with them ; failure to do so is the cause of fines, etc., so frequently com- 
plained of by parties who are not even aware of the fact that such 
knowledge is required and such fines, etc., imposed by the customs laws 
of this country itself. 

6. We know of no special changes in the tariffs of the countries 
mentioned; modifications are taking place constantly under Treasury 
decisions, but these do not modify the tariff; they simply clear doubtful 
points. 



RECIPROCITY STATEMENTS. 537 

7. If the removal or reduction of the customs duties applied to 
American goods only, our export trade would naturally be greatly 
aided and extended in the goods so affected, but if the removal or 
reduction were general the extension would be questionable. 

9. Prices of American goods arc generally lower than six years ago. 

10. Our foreign competitors have the advantage over us, that on a 
parity of cost they get the orders on account of the greater facilities 
they give. Furthermore, freight from Liverpool, Hamburg, or Havre 
to the countries we deal with are much lower than from New Yorl^. 
For instance, freight on various kinds of goods from Liverpool via 
Panama to the Pacific ports of Central America is 50 shillings ($12.50), 
and from New York on the same goods, also via Panama, $22 to $2(> per 
ton, so that it is quite practicable to ship goods from here to Liverpool 
and thence to the Pacific Coast via Panama cheaper than direct from 
New York to Panama. And as a matter of fact, certain goods which 
can not be had in Europe, and have of necessity to be bought here, are 
regularly shipped from here to Hamburg by steamer and thence per 
sail via Cape Horn at a saving of 50 per cent on the cost, through the 
cheaper freight thus secured. It can therefore be readily understood 
that merchants in the countries mentioned prefer to buy in Europe, and 
only buy here what they can not get there, or what is so much superior 
or more suitable to their needs that they are compelled to get it here in 
spite of themselves. Whenever an American article "takes" samples 
are sent to European correspondents with prices, etc., for imitation, and 
it is only when thoroughly convinced that the article can not be dupli- 
cated there at same cost that they give up the effort. This effort is not 
dictated by prejudice to America or things American; it is simply a 
matter of commercial convenience. If bought here payment has to be 
made cash or within three or four months at the most; if bought in 
Europe payment can be made in from six to twelve months. 

Then again, the purchase in Europe is preferred because the packing 
of goods is attended to with all the care requisite. There are places on 
the Pacific Coast where goods are landed through the surf in lighters. 
Merchandise destined to those ports must be packed in well-soldered 
tin-lined cases. Many manufacturers here prefer to lose sales rather 
than bother with the packing required. And as a general rule Amer- 
ican is so much inferior to European packing that when cargo is being 
transferred from the steamers to the lighters by their sorry appearance 
it is easy to distinguish American from European packages. Until 
American manufacturers give packing the importance it deserves, it 
will continue to be one of the most serious drawbacks to the extension 
of the export trade with the countries mentioned. 

11. From the foregoing remarks it will be seen that we can only com- 
pete with foreign merchants in as far as American goods through some 
peculiarity of superiority unattainable by European manufacturers 
force onr clients to buy here. 

13. Where positive reciprocity can be entered into no doubt a large 
trade could be developed, but in our opinion no special extension can 
he expected until American manufacturers themselves will pay as much 
special attention to the requirements of tin 1 export trade as do their 
European competitors. We believe the only help the Government can 
give is in securing transportation facilities so that our rates of freight 
.shall be no higher that those from Liverpool. 

We may add that in Europe commission merchants enjoy peculiar 
banking facilities that enable them in turn to extend their export 
trade. Bankers there will make advances on time drafts against ship- 



538 RECIPROCITY SPATEMENTS. 

merits to foreign countries. Here the commission merchant has to 
carry his advances himself, and has necessarily to limit his transactions 
to his own resources. All these remarks could be extended consider- 
ably by entering into details, but we do not think it necessary. We 
desire, however, to call special attention to the fact that this reply is 
applicable only to Mexico, Guatemala, Salvador, and Costa Bica; and 
we say this because one of the worst troubles we contend with is that 
many manufacturers here believe that what is suitable to Buenos Ayres 
must be the very thing wanted in Yera Cruz. 



Adams & Jimenis, New York, N~. Y. 

Our business for the past eighteen years has been largely with Cuba. 
Our experience, therefore, extends not only oyer a number of years 
before reciprocity with that island, but through that period and since. 

The very large increase of our exports during the time the treaty 
was in force, and the decided and immediate falling off as soon as it 
expired, leaves no question, in our opinion, as to the great advantages 
of reciprocity. 

The benefits of reciprocity with certain countries, as shown by the 
experience with Cuba, we consider convincing evidence that it would 
be a wise business move on the part of this Government to extend 
reciprocity to all countries south of us which export raw products of 
which we buy largely, and which in turn, having no manufacturing 
interests, would take our merchandise in exchange. 

We can not, however, see where reciprocity would benefit us with 
European countries, as they, like ourselves, are searching for an outlet 
for their manufactured products. 



Lanman & Kemp, New YorTc, N~. Y. 

Eeplying to your circular letter of the 4th instant relative to pro- 
posed reciprocal conventions, we would state, that as merchants engaged 
in the general import and export trade, and largely in the manufacture 
of propi ietary articles, we deal with almost every country in the world. 
We strive to sustain and enlarge our business by very liberal expendi- 
tures in advertising; by sending competent travelers everywhere 5 
acquainting ourselves with the requirements of each country, and by 
exercising all the knowledge and experience acquired in a career extend- 
ing back to the first decade of our century. This briefly answers your 
first four questions. 

5. We can not recall any discrimination in the way of customs regu- 
lations specially directed against our trade, but many of the countries 
have customs and consular regulations of such intricate character, and 
subjecting shippers to such exactions and heavy fines — for which they 
seem purposely designed — that they can not but restrict trade. If Gov- 
ernment agents would acquaint themselves with these matters, which 
they could easily do by conferring with the merchants of this city and 
visiting the consulates, it seems to us that our Government might seek 
the removal of these obstacles by appeal to the Governments concerned. 

0. Of recent changes in tariffs affecting our trade seriously, we may 
mention Ecuador, Brazil, Spain and colonies. In Ecuador the duties 



RECIPROCITY STATEMENTS. 539 

were enormously advanced, practically shutting out medicinal and toilet 
preparations and other products. The same has just happened in Brazil, 
where duties have in many instances been increased tenfold. In almost 
every South and Central American country some increase has taken 
place. 

7. Modifications of these duties would greatly benefit us. At present,- 
in order to retain our trade, we are forced by the exhorbitaut duties 
abroad to manufacture in foreign countries, notably Spain, Cuba, Argen- 
tina, Uruguay, Brazil, and Mexico. This not only necessitates an enor- 
mous outlay of capital and redaction in profits, but decentralizes our' 
business and reduces our force of employes here. 

8. The volume of our business has declined since six years ago, due 
to these tariff troubles principally, but also, in some measure, to the fall 
in silver, which crippled trade in India, China, Japan, and Latin- Amer- 
ican countries, and also to revolutionary troubles. 

9. Prices for export are generally lower than six years ago, manufac- 
turers having to sell cheaper in order to compete with Europeans. 

10. Our foreign competitors have the advantage of cheaper labor and 
vastly superior transportation facilities. In fact, we are frequently 
compelled to make shipments to South America by way of Hamburg 
and other European ports, because the rates, even by such roundabout 
way, are lower. 

11. In quality, we excel; in prices of many articles, we can hardly 
compete with foreign producers. 

12. The general effect of the reciprocal conventions of 1890 was, in our 
opinion, unfavorable to the trade of this country. While the exports to 
certain countries of favored products, such as breadstuff's, machinery, 
etc., may have increased, the reverse was the case with all other arti- 
cles, the reason of this being the hostility engendered in many quarters 
and the necessity under which the treaty nations were of increasing the 
duties on products not favored, for it must be borne in mind that the 
Latin- American nations are almost wholly dependent on customs duties 
for revenue, and if deprived of these on such leading imports as bread- 
stuff's they must make other products bear the burden. The treaties, 
we have reason to believe, were not generally popular, although appar- 
ently entered into with spontaneity by some of the nations, many of 
them feeling that they were forced by fear of adverse discrimination or 
of seeming disregard for this greater nation. Had Brazil, which, we 
believe, subsequently regretted its precipitancy, not volunteered to 
make the first of the reciprocity treaties, it may be doubted whether 
other countries would not have held aloof, which only entered because 
they feared that Brazil, with its preponderant production of coffee and 
great possibilities for production of sugar, would, if alone favored, 
greatly injure them. As evidence of the discontent aroused in Brazil, 
we have the report of our traveler, who conversed on the subject with 
merchants there and who was in Bio when it was proposed in the Senate 
to repeal the treaty. Some of the countries entered reluctantly, and 
with no kindly feelings. Others, like Venezuela, Colombia, and Ecua- 
dor, where friendliest feelings prevail for the United States, because 
they could not make the sacrifice demanded, were discriminated against, 
with the result that trade was diverted to Europe, and it will be a long 
time before it finds its way back to us. And no little feeling detri- 
mental to our trade was also created by the apparent favor shown to 
such countries as Mexico, Argentina, and others, which were not dis- 
criminated against, despite the fact that they declined to make treaties. 
This partiality Mas as much resented by the countries which made 



540 RECIPROCITY STATEMENTS. 

treaties as by those which were harshly singled out for discrimination. 
The repeal of the treaties has not improved matters, as the removal of 
favor from certain products has not been accompanied by reduction of 
the duties which were raised on others. Thus the evil effects of the 
treaties survive their repeal. 

13. For the reasons above given we are opposed to reciprocal con- 
ventions which can only benefit certain products at the expense of 
others, which, perhaps, need encouragement more. 

While it may not be pertinent to the subject, we wish to say that 
instead of such reciprocity, which sows as much discord as harmony, 
and only opens one door to close another, it would seem preferable to 
restore the duties on coffee, tea and opium, and other articles now on 
the free list, the removal of which has been of benefit to the foreign 
producers, but of little advantage to the consumers here, being prod- 
ucts which can bear taxation without burden, and which can produce 
large revenue. 

As you invite suggestions, we would recommend as a means of develop- 
ing our home industries and encouraging the export of manufactured 
goods, that the duties on raw materials be removed so that, pitting our 
skill against the cheap labor of Europe, we maybe put in a position to 
compete in Spanish-American, Asiatic, and other markets with foreign 
manufacturers. Thus labor and capital would find here profitable 
employment. 

P. S. — We observe that, in responding to your circular, the National 
Association of Manufacturers of Philadelphia advocate the reciprocity 
treaties u because treaties of this character are being or have been nego- 
tiated between European governments and nations to the south of us, 
to the detriment of our commercial interests abroad." 

We have never heard of such treaties — commercial treaties — yes — but 
as our treaties with the same countries in almost all instances grant us 
the favored-nation privileges, we do not see where the detriment to our 
interests comes in. 

We certainly should have commercial treaties with those countries, 
and by such treaties and all other ways cultivate good relations with 
them: but we should avoid all appearances of compulsion. If recipro- 
cal concessions are to be made they-should be by mutual and pleasant 
arrangements, and not by one of the parties stipulating at the outset 
that certain penalties will follow if certain privileges are not granted. 



Glover & Odendahl, New Orleans, La. 

There is no doubt whatever that reciprocity is the true principle, and 
in fact the only true principle, for the advancement of the agricultural 
and industrial interests of the United States. All other measures, 
such as duties, etc., may bring forth an improvement in certain lines 
for a certain period, but they carry with them unfavorable reaction on 
other commodities at different times. True, reciprocity is based on the 
actual principle of barter, and barter means in so many words: I will 
sell you a barrel of flour for Its equal value in sugar, and you give my 
flour the same or relative privilege that I give your sugar. 

The moment this principle of reciprocity is vigorously developed (it 
will require fine diplomatic work and some few years to do it), it will 
open the world to the surplus of our agricultural productions and will 
increase the output of our factories. 



RECIPROCITY STATEMENTS. 541 

If Congress could see its way clear to adopt this, I firmly believe that 
this policy would shortly produce a wholesome and healthy improvement 
in all branches of business. 



Laurus Loo m is, Catlin d; Co., New York City. 

2. Cotton goods. 

3. Brazil, Venezuela, Colombia, Central America. 

6. None, except the advance in duties that has taken place since the / 
abrogation of the reciprocity treaties. 

7. The removal or reduction of customs duty would increase the 
volume of our trade very largely. 

8. About the same as then. 

9. Lower. 

12. Increased the trade very largely, particularly in cotton goods. 

13. Yes, under the general principles of the late James G. Blaine. 



Arkell & Douglass, New YorJc. 

1. Our firm name is Arkell & Douglass, 95 Broad street, New York 
City. We have branches at London, England ; Sydney and Melbourne, 
Australia, and Port Elizabeth, South Africa, all under the same name. 

2. Our business embraces the exporting of all and every class of mer- 
chandise which is sent from this country in the directions that we S£>e- 
cially deal with, and we might say that most classes of American goods 
go abroad, although in some cases the quantity is small. 

3. Our dealings are principally with Australia, New Zealand, and 
Tasmania, and with the entire South African colonies, which includes 
Cape Town, Port Elizabeth, Port Natal, East London, and Delagoa 
Bay, including the back country, and the Transvaal; Ave also export to 
the Cold Coast. We do more or less South American trade, but to no 
very large extent. 

4. Our efforts are continually exerted toward an increase of our for- 
eign business through the establishing of our own house where the 
trade is sufficient, and the sending of travelers throughout the sections 
we deal with, showing samples, and thus taking orders and introducing 
new goods. By this means we have opened up for American manufac- 
turers the introduction of many new lines, and have been fairly success- 
ful in enlarging and increasing the business. 

5. In the directions referred to above there are no special laws or 
customs that prevent the extension of American trade, we being on the 
same basis, so far as the bringing of goods into those countries, as the 
other nations of the world. Our dealings being, of course, with English, 
colonies nearly entirely, there is naturally somewhat of a prejudice in 
favor of home-made goods, and as English capital is also largely 
invested in inauy of the firms in the colonies to which we have referred, 
orders first seek the home market before coming our way; but this 
could only be expected. Where, however, American goods are cheaper 
or of better quality at equal prices, the trade is not diverted from us. 

. 6. The Australian colonies being divided into groups having sepa- 
rate laws of their of own, there are a number of different tariff's — from 
practically free trade in New South Wales to heavy protective duties 



542 RECIPROCITY STATEMENTS. 

in Victoria, New Zealand and other colonies being semiprotection. But 
as stated already, goods coming from other countries pay the same duty 
as from here, so that we do not consider this any hardship, except where 
the duty is excessive it naturally tends to enable the building up of 
home industries and the keeping out gradually of all classes of goods 
that can be made at home cheaper than imported, no matter what the 
direction is from which said goods might be imported. 

7. The removal or reduction of duties in the colonies where we deal 
would, of course, naturally do away with likely home competition, and 
thus enable larger amounts of American goods to go into said markets ; 
but this, again, would be equally in favor of other nations as our own, 
and so would tend to benefit all equally, and would be no special gain 
to this country excepting for the reason specified. 

8. The volume of business to the colonies named has increased very 
largely during the past six years, and our proportion of the total has 
been proportionately increased. In the case of South Africa, to be 
more clear, we think the trade has more than doubled during the period 
named; that with Australia is, perhaps, one-third greater. 

9. The present selling prices on practically every line of American 
goods are decidedly lower than they were six years ago. There pro- 
bably is only one or two cases where the average is not from 10 to 25 
per cent, in some cases as high as 50 per cent less. 

10. This question on your part opens a wide field, and American 
goods in the directions named suffer very largely by reason of the 
unfortunate position we are in, having no return business to speak of 
from countries named, which requires us to pay a very much higher 
freight rate than is enjoyed by others, especially England, Germany, 
and France, with their subsidized transportation lines. Most of our 
goods are carried in English, German, and Norwegian vessels. There 
is, further, the disadvantage of no proper banking arrangement, so that 
American goods suffer by having to pay heavy exchange rates to for- 
eign bankers. The export banking system of this country is most 
deficient, and there appears no necessity for this unfortunate situation 
of our country. The German, the English, and the French, through 
their branches here, which is the only mode of selling bills, draw tribute 
on our commerce. The transportation question is an old one, therefore 
we shall not go into it largely except to say that the United States 
Government has shown and is showing a lamentable want of ability 
and knowledge of trade relations by not doing something to foster and 
encourage American shipping. Once put on its feet it would take care 
of itself. Many plans have been suggested, and we understand as well 
the question of subsidy is not always favorably looked upon, but under 
one plea or another English, German, and French shipping receive 
great encouragement. 

. The old theory of having a payment made in the way of a rebate on 
duty for goods coming in this country in American ships or steamers is 
a good one, but at the same time it opens up always the question that 
others can retaliate by similar line of action which is not desirable, and 
we incline to the theory that it is not the proper method. Either 
advertise for contracts to run regular lines and carry mails and pay an 
actual yearly subsidy, or adopt a system which we advocate, which is, 
instead of paying a subsidy, when goods have been brought here in 
American bottoms, pay a bonus to ships carrying goods from here in 
Americanbottoms. What wemean is, thataccording to the class of goods 
on all articles which leave here for foreign lands in American ships there 
will be paid a rebate which will go to the exporter, or vessel, of anywhere 



RECIPROCITY STATEMENTS. 543 

from 5 to 10 per cent or less, according' as may be deemed necessary. 
This will accomplish the work of tlie other system, and will be a direct 
benetit to the ship and the manufacturer — to the ship in the way of sub- 
sidy, as American vessels will command a higher charter value, and to 
the manufacturer, as it enables American goods to belauded cheaper in 
the foreign market. It can hurt no foreign country, nor is there any 
way in which a foreign country can offset the arrangement except by 
doing the same thing, which is not likely under their present system, 
and even if they did, it would simply mean that competition was 
placed on old levels; but we believe it would be instrumental in 
building up our shipping industries very rapidly. 

11. We can compete with foreign merchants on a very large and diver- 
sified class of American manufactured goods in prices, and so far as 
quality is in question, we usually consider the American-made goods 
superior to both German and English, and if it were not for the trans- 
portation difficulty and the exchange difficulties (and again we might 
mention the inability of the ordinary American manufacturer to give 
any considerable credit to the exporter), we think we could compete 
fairly well on most general lines. We refer to the manufacturer under 
this heading as in Germany, England, and France. The export merchant 
of standing has a credit given to him by the manufacturer on his pur- 
chases of anywhere from three to six months, or there is a very small 
discount for cash, money not being worth as much in those centers as 
here. This enables the exporter to send his goods out free, and make 
collections, and still be in time to repay the manufacturer. We export- 
ers in this country labor under a very serious difficulty in having to 
pay practically cash for all export goods, through the necessity of the 
manufacturer who runs his business on too close a capital, or through 
his disinclination to give those who are trying to build up a trade for 
him the same facilities which his fellow-manufacturer would abroad. 

12. You ask as to the opinion of reciprocity treaties and those pre- 
viously made. We would state that the 1890 treaties dealt with coun- 
tries near by, and appeared to work fairly well; but there is always 
the question in connection with reciprocity between two countries that 
they must avoid in their mutual arrangements — the taking of any step 
which is detrimental to the interests of other nations, as that would 
mean reprisal, and so, in our opinion, while the theory of reciprocity is 
a perfectly proper and natural one, yet it must be carefully worked and 
carried out so as to avoid any possible friction or infringements of the 
rights of others. We mean by this that it is not right that a colony in, 
say, Africa or Australia, allows the goods of one nation to go in at less 
duty than the goods of another nation, unless for a better reason than 
the general reciprocity idea. There are, however, with all nations, cer- 
tain classes of goods which are, you might say, almost confined to the 
nation itself, as, for instance, turpentine in this country, rosin, etc. We 
could take up such classes of goods, and with perfect accord have them 
admitted free, so as to be used as largely as possible, and give nations 
who would admit themfree certain advantages on similarclasses of goods 
if they had them within their borders to bring into our country; but 
unless the theory and system is extended on these lines, it becomes 
apparent to anyone who gives the matter a thought that it would sim- 
ply mean a gradual breaking up of the world's present trades relations, 
each one making treaties here and there to the detriment of others, and 
the matter would soon reach such a point that beyond question it would 
lead to a reverting to the older theory of fair and free competition 
between all. 



544 RECIPROCITY STATEMENTS. 

13. Probably in our answer to question 12 we liave practically replied 
to your question in No. 13 as to our views on the pushing of the reci- 
procity idea, and Ave therefore can only say that on proper and prudent 
lines the idea is a brilliant one, but would have to be carefully curbed 
so as not to lead to dangerous complications temporarily unforeseen in 
the anxiety for increase cf business. 

We would conclude by stating that we have not gone into the ques- 
tion of values in any of our remarks, which we think in a general letter 
of this kind is hardly necessary, but we are certainly very strong advo- 
cates of something being done by the Government particularly on the 
question of transportation and a most liberal charter for a foreign bank 
if capital can be found. Quick and direct communication with all lands 
is necessary to enable this country to build up a large foreign com- 
merce, and under the present existing relations and the maritime laws 
which hamper us so greatly, without Government aid it seems almost 
impossible for headway to be made. As all in the export business well 
know in this country, they are, through deficient means of transportation, 
losers of business to the extent of many millions of dollars per annum. 
We will simply give one illustration. A house in Australia or New 
Zealand desires to buy, say, a thousand tons of goods. They have Ameri- 
can prices and they have English prices. They are practically uniform. 
The quality of the American line, however, may be superior, and ordi- 
narily the order would come here. They then, however, look at the 
question of delivery and transportation. They find that from England 
or Germany they will be able to bring the goods out, by cabling for them, 
in probably forty days by steamer and as low as by sailers from here. 
From this country there is no steamer communication. They there- 
fore discover that the goods must come by sailer, taking from three to 
four months in transit. They wish the goods quickly, and this point at 
once turns them to the home markets, with the extra benefit of saving 
in exchange and likely longer credit. We omit, when we state there is 
no steamer communication, the San Francisco and Vancouver route to 
Australia, but while this is well enough so far as mail communication is 
in question, and we strongly favor a subsidy to keep the American steam 
line running from San Francisco as against the Vancouver route, yet to 
get goods from the East to San Francisco by rail adds so largely to the 
cost that except for California products the line as a freight line is of 
practically little value. 

We trust the various matters we have outlined may be of some use 
to your valued committee, and you can be assured that any information 
in our power we can put before you we shall be glad cheerfully to give. 



Everett, Heaney <£ Co., New Yor~k City. 

2. Dry- goods exporters. 

3. South and Central America, West Indies, China, Africa, and Sand- 
wich Islands. 

4. By travelers to South and Central America and mail offers to 
other countries with good success, because our representatives are 
competent dry-goods men. 

5. It has probably come under your observation that in spite of exist- 
ing treaties between the Queen of Madagascar and Great Britain, the 
United States, Germany, and Italy, the French Government intends 
placing Madagascar on the same footing as regards custom duties as 



RECIPROCITY STATEMENTS. 545 

the French colonies in general. Such action will be most injurious to 
all but French citizens who have commercial relations with Madagascar, 
and we especially urge that our minister be instructed to intervene on 
behalf of American interests. The decision of the French Government 
in this matter may be announced at any moment, so it is advisable that 
if any action is taken on the part of our representative it should be 
done without delay. The business done between the United States and 
Madagascar in American cottons, etc., amounts to several millions per 
annum. / 

6. None, except the abrogation of the reciprocity treaties which were 
very detrimental to our business, and the increased duties in Brazil. 

7. It would increase our sales enormously; we do not do 10 per cent 
of the volume of business now that we did under the reciprocity treaty 
with Brazil. 

8. We have not been established six years. 

9. From 10 to 15 per cent less. 

10. It is a well-known fact that transportation from European cen- 
ters is much less than from the States, and communication much more 
frequent for west coast of South America. The greater part of Ameri- 
can dry goods are shipped via Panama, and therefore are subject to 
the exorbitant charges of the Panama Bailroad Company, whereas, 
from England, Germany, and France, they are shipped via the Straits 
of Magellan, and we very often find that we can ship via Europe and 
save 33 J per cent against direct shipment via Panama, allowing for 

* freight irom here to Europe. 

11 . On all classes of coarse yarn goods, and on certain classes of dyed 
and printed heavy fabrics, we can more than compete with the Man- 
chester markets; but on fine yarn goods of high count and filled classes 
we can not compete, but there is one simple way of throwing the 
greater part of the foreign cotton-goods trade into this market, namely, 
the placing of an export duty on raw cotton to all European markets. 
While this would curtail to some extent the shipment of raw cotton to 
European markets, it would be more than counterbalanced by the 
increased demand of our mills, and the Southern planters would reap a 
higher price for their cotton than they do under existing circumstances. 

12. Favorable in the highest degree; their repeal reduced our busi- 
ness to those countries to the extent mentioned in Xo. 7. 

13. Yes; but with American nations only, as we fail to see what 
advantage we derive from European reciprocity. 

II. Hep. 2203 35 



APPEM >1X ]■ 



STATISTICAL TABLES RELATING TO THE FOREIGN COMMERCE 
OF THE EXITED STATES. 



547 



548 



RECIPROCITY STATEMENTS. 



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RECIPROCITY STATEMENTS. 



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APPENDIX L. 



RATES OF DUTY IMPOSED BY FOREIGN COUNTRIES UPON 
ARTICLES EXPORTED FROM THE UNITED STATES. 



603 



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INDEX TO THE APPENDIXES. 



Pago. 

Acme Milling Company, Indianapolis, Ind 322 

Adams & Jimenis 518 

Addresses by representatives of— 

Live-stock industries 193 

Flour industry 203 

Admission of hog products into Germany 140 

Adulterated foods 127 

Agricultural implements 97 

Agricultural implements, circular of inquiry 427 

Replies from — 

Buclier & Gibbs Plow Company, Canton, Ohio 436 

Farquahar, A. B., Company, York, Pa 428 

J ohn Moore's Sons Company, Raritan, N.J 434 

Johnston Harvester Company, Batavia, N. Y 431 

Keystone Manufacturing Company, Sterling, 111 436 

Marion Manufacturing Company, Marion, Ohio 432 

Moline Plow Company, Moline, 111 430 

Robinson Chilled Plow Company, Canandaigua, N. Y 431 

Stoddard Manufacturing Company, Dayton, Ohio 432 

Akron, Ohio, reply of the Governor Works 310 

Alf'ord & Berkele Company, New York 390 

Allen's, J. J., Sons, Philadelphia, Pa 443 

Allerton, W. S., Chicago, 111 193 

American Cranberry Trade Company, reply, New York 330 

American Multiple Fabric Company, Olneyville, R. I 372 

American Paper Makers' Association, New York 180, 313 

American products, restriction by foreign countries 137 

Anchor Mill Company, Superior, Wis 333 

Animals : 

Exported from Argentina 587 

Exported from the United States 576 

Ansonia Clock Company, New York 459 

Appendix A. Reciprocity with Canada 63 

B. Trade with Argentine Republic and Uruguay 77 

C. Trade with China and Japan 105 

D. Adulterated food exported to the United States 125 

E. Restriction on American products by foreign countries 135 

F. Replies of commercial and industrial organizations 145 

6. Addresses before committee by representatives of the live-stock 

industry 191 

H. Addresses before committee by representatives of the flour in- 
dustry 201 

I. Various industries, statements of representatives of 263 

J. Manufacturers and merchants' replies 293 

K. Statistical tables relating to the foreign commerce of the United 

States 547 

L. Tariffs of foreign countries 603 

Argentine legation, statement of 91 

Argentine Republic : 

Animals exported 587 

Breadstuffs exported 587 

Meat exported 588 

Tariff 82 

Trade with 79 

Trade with Europe 84 

Trade with the United States 85 

Value of the market 84 

Axkell & Douglass 541 

«27 



628 INDEX. 

Page. 

Armour & Co 355 

Associated manufacturers, New York . m 157 

Atlas Engine Works, Indianapolis, Ind .* 420 

Atlas Tack Corporation, Boston, Mass 395 

Attitude of Newfoundland 70 

Australasia : 

Exports and imports 589 

Tariffs 622 

Trade with principal countries 590 

Austria-Huugary : 

Exports and imports 548 

Tariff 604 

Aviston Milling Company, Aviston, 111 332 

Ayres, B., Philadelphia, Pa 309 

Ayer, J. C., Company 441 

Baldwin Locomotive Works, Philadelphia, Pa 382 

Ball & Wood Company, New York 408 

Ballard & Ballard Company, Louisville, Ky 335 

Baltimore, Md., Board of Trade '. 268 

Barues Manufacturing Company, Mansfield, Ohio 311 

Barber, D. P., & Son, Minneapolis, Minn 337 

Becker, William, Leather Company, Milwaukee, Wis 487 

Beef and cattle prohibited in Germany 137 

Beef exported from Uruguay 102 

Beef products, total exports 576 

Beeman & Cashin Merchandise Company, Evanston, Wyo 317 

Belgium, prohibiting the importation of cattle from the United States 141, 188 

Belgium, tariff 604 

Bender & Aldred, Pittsburg, Pa 445 

Bennett, A., & Co 528 

Bernhard, Stern & Co. , Milwaukee, Wis 340 

Black & Clawson Company, Hamilton, Ohio 409 

Bliss Milling Company, Seymour, Ind 327 

Bloom, Sam uel, & Sons, San Francisco 499 

Board of Trade — 

Baltimore, Md 268 

Columbus, Ohio 181 

Clarksville, Tenn 175 

Gainesville, Fla 159 

Glencoe, Minn 172 

Minneapolis, Minn „ 184 

National 147 

North Adams, Mass 181 

Northampton, Mass . 154 

Paterson, N.J 159 

Philadelphia, Pa 183 

Scranton, Pa 174 

Tupelo, Miss 177 

Board of Trade and Transportation, New York 176 

Boston Chamber of Commerce 183 

Boulton, Bliss & Dallett, New York 490 

Brass and Iron Works Company, Fostoria, Ohio 421 

Brazil : 

Exports and imports — 

France 595,596 

Germany 598 

United Kingdom 591, 592 

United States - 548 

Flour trade with 206, 216 

Hog products 1 580 

Principal articles exported and imported 549 

Tariff 610 

Value of total exports 548 

Breadstuffs 319 

Total exported from Argentina 588 

Total exported from United States 560 

Brigham-Hopkins & Co., Baltimore, Md 370 

British Guiana: 

Exports and imports..... 548,550 



INDEX. 629 

British Guiana— Continued. Pag© 

Export of other provisions 58;") 

Tariff 618 

Value of principal articles 550 

Value of total exports and imports 548 

British West Indies: 

Exports and imports 54N 

Breadstuff's 570 

Hog products 580 

Other provisions 58 1 

Principal articles exported and imported 551 

Tariff (110-612 

Value of total exports 548 

BroWnell Car Company, St. Lonis, Mo 473 

Brush Electric Company, Cleveland, ( )hio 388 

Bncher & Gibbs Plow Company, Canton, Ohio 436 

I iuft'alo Merchants' Exchange, Buffalo, X. V 170 

Bvrnham & Co., Boston, Mass 314 

Business Men's Association, Crystal Falls, Mich 153 

Business Men's Association, Martinsburg, W. V'a 161 

Calef, Horace W 525 

( lambria Iron Company, Philadelphia, Pa 385 

Canada : 

Reciprocity in 1 sr> 1 65 

Other provisions 586 

Tariff 608 

Canadian trade with the United States 73 

Carleton& Moffat 533 

Carr, Walter 534 

Cars, vehicles, etc.. circular of inquiry 470 

Replies from — 

Brownell Car Company, St. Louis, Mo 473 

Chattanooga Car and Foundry Company 474 

Columbus Bnggy Company, Columbus, Ohio 474 

Dash and Carriage Goods Company, Cincinnati. Ohio 47!t 

Haydock Carriage Company, Cincinnati, Ohio 47!> 

Muncie Wheel Company, Muncie, 111 473 

Norton Door Check and Spring Company, Boston 47:: 

Sheffield Car Company, Three Rivers, Mich 480 

Tricycle Manufacturing Company. Springfield, Ohio 471 

Wells & French Company, Chicago, 111 471 

Catlin &Co 378 

Cattle : 

Exported from — 

Argentine Republic 99 

Uruguay 102 

Imported from United States prohibited in — 

Belgium 14 1 

Denmark 142 

France 141 

Germany 137 

Ceballos, J.M.& Co 525 

Central and South American Telegraph Company, New York 301 

Central Iron Works, Harrisbnrg, Pa 383 

Chamber of Commerce — 

Boston. Mass •„ 223 

Cleveland, Ohio 149 

Milwaukee, Wis 149 

New York 176 

Pensacola, Fla 179 

Pittsburg, Pa 178 

Chattanooga Car and Foundry Company 474 

Chester, Pa., Merchants and Business Men's Association 179 

Chicago, 111., The National Live Stock Exchange 162, 185 

China: 

Breadstuffs 571 

Tariff 620 

China and Japan, trade with 107 

Cincinnati Chamber of Commerce and Merchants' Exchange 150 

Cincinnati Corrugating Company, Piqua, Ohio 400 



630 INDEX. 

Page. 

Cincinnati Tool Company, Cincinnati, Ohio 425 

Circulars of inquiries. . 147, 295, 319, 354, 366, 380, 403, 427, 438, 452, 458, 463, 470. 483, 511 

Clarinda, Iowa, Farmers' Headquarters 162 

Clarksville, Tenn., Board of Trade 175 

Cleveland Chamber of Commerce 149 

Cleveland Milling Company, Cleveland, Ohio 336 

Clocks, watches, fancy goods, circular of inquiry 458 

Eeplies from — 

Ansonia Clock Company, New York 459 

Keystone Watch Case Company, Philadelphia, Pa 461 

Meriden Bronze Company, New York 460 

Coates Bros 529 

Colombia : 

Breadstuffs 574 

Other provisions 586 

Tariff 616 

Columbus Buggy Company, Columbus, Ohio 474 

Columbus, Ohio, Board of Trade 181 

Colwell, A. W., engineer, etc., New York 423 

Commerce, foreign, statistical tables relating to 548 

Commercial Association of Sioux City 151 

Commercial Club, Newton, Kans 182 

Commercial Club, Velasco, Tex 180 

Commercial independence of Canada .'. 69 

Commercial League, Fort Smith, Ark 183 

Commercial Milling Company, Detroit, Mich 337 

Commercial union between the United States and Canada proposed 68 

Commercial and industrial organizations, replies of 147 

Commission and export merchants, circular of inquiry 511 

Replies from — 

Adams & Jimensis, New York 538 

Arkell & Douglass, New York 541 

Bennett, A., & Co., New York 528 

Bliss, C.N., New York 528 

Ceballos, J. M., & Co., New York 525 

Calef, Horace W., New York 525 

Carleton & Moffat, New York. 533 

Carr, Walter, New York 534 

Coates Bros., Philadelphia, Pa 529 

Cone Export and Commission Company, New York 512 

Dumont Company, New York 526 

East India Trading Company, Portland, Oreg 535 

Elbert & Gardner, New York 527 

Everett, Heaney & Co., New York 544 

Glover & Odendahl, New Orleans, La... 540 

Grace, W.R.,& Co., New York 528 

Herrmann, Theo., New York 521 

Kohn, Weil & Co., New Orleans, La 531 

Kunhardt & Co., New York 519 

Laurus Loomis, Catlin & Co., New York 541 

Lawrence Johnson & Co., Philadelphia, Pa 529 

Lanman & Kemp, New York 538 

Loaiza & Co., New York 536 

Oteri, S., New Orleans, La 532 

Patterson, Ramsay & Co., Baltimore, Md 530 

Peck, Wm.E., & Co., New York 515 

Pomares & Cushman, New York 516 

Puig, Emilio, New York 532 

Rothschild, Bros. & Co., New York 517 

Seixas, A. M., New York . 518 

Smith, Hogg & Gardner, New York 515 

Sussdorff, Zaldo & Co., New York 532,533 

Williams, Richardson & Co., New Orleans 536 

Committee on industrial extension, Orwigsburg, Pa 156 

Cone Export and Commission Company, New York 301 

Contencin & Son, New York 307 

Contoocook Mills Company, Hillsboro Bridge, N. H 371 

Costa Rica, tariff 608 

Cotterill, Charles A., Detroit, Mich 272 



INDEX. 631 

Page. 

Cotton industry in Japan and India 117 

Cowgill & Hill Milling Company, Carthage, Mo 349 

Crane Company, Chicago, 111 419 

Craue, J. B., & Co., Wohurn, Mass 492 

Crockery, glass, etc 452 

Crosby, John, Minneapolis 251 

Crown Distilleries Company, San Francisco 501 

Crystal Falls, Mich., Business Men's Association 153 

( uba and Puerto Rico flour trade 206 

Cudahy Brothers Co 365 

Cudahy Packing Company 357 

Cumberland Mills, Nashville, Tenn 334 

Cuba : 

Breadstuffs 568 

Hog products 579 

Principal articles exported and imported 553 

Tariff 614 

Total value exports and imports 548 

Curtis, William E. : 

Statement 79 

Trade with China and Japan 107 

Dabney, Hon. Charles W., statement 127 

Daisy Roller Mill Company, Superior, Mich 341 

Danish West Indies, tarifl' 612 

Dash and Carriage Goods Company 479 

Dauphin Roller Flouring Mills, Dauphin, Pa 335 

Davis, M. H., president Winter Wheat League 209 

Dayton Hedge Company, Dayton, Ohio 329 

Dean Bros. Steam Pump Works, Indianapolis, Ind 395 

De Butts & Daggett, Boston, Mass 486 

Dederick, P. K 394 

Demise, D. D., New Jersey State board of agriculture 281 

Denmark : 

Prohibiting the importation of cattle from the United States 142, 189 

Other provisions 582 

Tariff 604 

Dennis, J. A., Trenton, N. J 497 

Detroit, Mich . , Charles A. Cotter ill 272 

Detroit Steel and Spring Company 404 

Diamond Machine Company, Providence, R.I 410 

Diez, W. L. Rodiguez, statement, Montevideo 101 

Disston, Henry, & Sons, Philadelphia 387 

Dock charges, etc., in London 259 

Dole Bros. Company, Boston, Mass 390 

Dominguez, Hon. Vincente I., statement, Argentine legation 91 

Dornette, J., & Bro 465 

Draft statement on London clause 254 

Draper, Geo. , & Sons, Hopedale, Mass 405 

Drugs, medicines, chemicals, circular of inquiry 438 

Replies from — 

Allen's, J. J., Sons, Philadelphia, Pa 443 

Andrew Jergens & Co., Cincinnati 444 

Ayer, J. C, Company, Lowell, Mass 441 

Bender & Aldred, Pi ttsburg 445 

Gilman Bros., Boston,-Mass 441 

Harrison Bros. & Co., Philadelphia, Pa 439 

Heath & Mulligan Manufacturing Company, Chicago 446 

Jerome, Marble & Co., Boston, Mass 444 

Josephine Moore Company, Chicago 450 

Longman & Martinez, New York 445 

Mulford,H.K., & Co., Philadelphia, Pa 446 

Prouta Cura Company, Meriden, Conn , 443 

Seabury & Johnson, New York 447 

Sharpless Dye- Wood Extract Company, Philadelphia 450 

Dulnth Jobbers' Union, Duluth, Minn 180 

Dumont Company 526 

Dutch West Indies, tariff 612 

East India Trading Company 535 

Edge Moor Bridge Works, Wilmington, Del 395 



632 INDEX. 

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Effect of the Wilson law in Canada , 72 

Elbert &. Gardner 527 

Essences employed in Germany for the manufacture of artificial liqueurs, etc.. 129 

Etowah Iron Company, Cartersville, Ga 483 

Evans, T. B., statement, Geneva, 111 329 

Everett, Heaney & Co 544 

Export trade in ilonr 239 

Exports of cattle from Argentina 99 

Exports from the United States to — 

Australasia 590 

Austria- Hungary 548 

Belgium — 

Breadstuffs 563 

Hog products 577 

Other provisions 582 

Brazil — 

Hog products 580 

Principal articles 549 

Value of total exports 548 

British Guiana — 

Value of principal articles 550 

Value of total exports 548 

Other provisions 585 

British West Indies — 

Breadstuffs 570 

Hog products 580 

Other provisions 584 

Principal articles 551 

Value of total exports . 548 

Canada — 

Other provisions 586 

China — 

Breadstuffs 571 

Colombia — 

Breadstuffs 574 

Other provisions 586 

Cuba — 

Breadstuffs 568 

Hog products 579 

Principal articles . 553 

Value of total exports 548 

Denmark — 

Other provisions 582 

France — 

Breadstuffs 562 

Hog products ; 577 

Other provisions 583 

Germany — 

Breadstuffs _ 564 

Hog products 578 

Other provisions 583 

Value of total exports 548 

Guatemala — 

Principal articles 556 

Value of total exports 548 

Haiti — 

Other provisions 585 

Honduras — 

Principal articles 557 

Value of total exports 548 

Hongkong — 

Breadstuffs 572 

Japan — 

Breadstuffs 573 

Mexico — 

Breadstuffs 567 

Hog products 580 

Netherlands — 

Breadstuffs 565 



INDEX. 633 

Exports from the United States to — Continued". Page. 
Netherlands — Continued. 

Hog products 578 

Other provisions 583 

Nicaragua — 

Principal articles 558 

Value of total exports 548 

Puerto Kico — 

Breadstuff's 569 

Hog products 579 

Principal articles 554 

Value of total exports 5-18. 

Salvador — 

Principal articles 559 

Value of total exports 548 

Santo Domingo — 

Other provisions 486 

Principal articles 555 

Value of total exports 548 

Sweden and Norway — 

Breadstuff's 566 

Hog products 579 

Other provisions 584 

United Kingdom — 

Breadstuffs 561 

Hog products 578 

Other provisions 584 

Venezuela — 

Breadstuffs 575 

Hog products 581 

Other provisions 585 

Exports from the United States: 
Total values of— 

Animals. 1885-1895 576 

Beef products. 1885-1895 576 

Breadstuffs. 1885-1895 560 

Hog products, 1885-1895 577 

Other provisions, 1885-1895 582 

Fairmont Worsted Mills. Philadelphia. Pa 368 

Fancy goods, clocks, and watches, circular of inquiry 458 

Replies from — 

Ansonia Clock Company 459 

Keystone Watch Case Company 461 

Meriden Bronze Company 460 

Farley. Harvey & Co., Boston, Mass 303 

Farm, Willard Warner. Chattanooga, Tenn 329 

Farmers' 1 [eadquarters, Clarinda, Iowa 162 

Farrar. Hon. Edward, statement 63 

Farquahar, A. B.. Company. York, Pa 428 

Far well & Rhines. Watertown. N. Y 332 

Feder. Silberberg & Co., Cincinnati 375 

Field. J. A.. Manufacturing Company, St. Louis, Mo 409 

File Company, Nicholson, Providence, R. I C05, 391 

Filer & Stowell Company, Milwaukee, Wis 407 

Fishback. George W.. statement 94 

Flour industry, addresses on.. 203, 

Flour sales in West Indies. ..'. 225 

Flour trade with — 

Brazil 206,216 

Cuba and Puerto Rico 206 

France 226 

Food adulteration 127 

Foreign tariffs : 

Argentina 616 

Australasia — 

New South Wales 622 

New Zealand 624 

Queensland 624 

South Australia 622 

Tasmania 622 



634 INDEX. 

Foreign tariffs— Continued. Page. 
Australasia — Continued. 

Victoria 622 

West Australia 622 

Austria-Hungary 604 

Belgium ""] 604 

Brazil 616 

Canada 608 

Chile 616 

China 620 

Colombia 616 

Costa Rica 608 

Cuba 614 

Denmark r 604 

Ecuador 616 

France 604 

Germany 604 

Guatemala 608 

. Guianas — British 618 

Dutch 618 

French 618 

Haiti 614 

Hawaii 624 

Honduras 610 

Italy 606 

Japan 620 

Mexico 610 

Netherlands 606 

Nicaragua 610 

Norway 606 

Paraguay 618 

Peru 618 

Puerto Eico 614 

Salvador 610 

Santo Domingo 614 

Spain 606 

Sweden 606 

Turkey 608 

United Kingdom 608 

Uruguay 620 

Venezuela 620 

West Indies — 

British Bahamas 610 

Jamaica.... 612 

St. Vincent 612 

Danish 612 

Dutch 612 

French — Gu ada loupe 614 

Martinique 612 

Fort Smith (Ark.) Commercial League 

France: 

Breadstuffs 562 

Hog products 577 

Other provisions 583 

Prohibiting the import of cattle from the United States 141, 188 

Tariff , 604 

Trade with Argentina 588 

Trade with Australasia 590 

Trade with Brazil 595, 596 

Trade with Guatemala, Costa Rica, and Honduras 597, 598 

Trade with Spanish West Indies 596, 597 

French West Indies, tariff 612-614 

Fruit Exchange, Semi-Tropic, Los Angeles, Cal 179 

Fry burg Roller Mills, Fry burg, Pa 342 

Furniture, pianos, and organs, circular of inquiry 463 

Replies from — 

Dornette, J., & Bro., Cincinnati, Ohio 465 

Globe Company, Cincinnati, Ohio 468 

Kimball, W. W., Company, Chicago, 111 464 

Mason & Hamlin Company 465 



INDEX. 635 

Furniture, pianos, and organs, circular of inquiry — Continued. Page. 
Replies from — Continued. 

Marinette & Menominee Box Company, Marinette, Wis 466 

Standard Sewing Machine Company, Cleveland, Ohio 467 

Stork & Clarke Piano and Organ Company, Chicago, 111 466 

White Sewing Machine Company, Cleveland, Ohio 468 

Gainesville, Fla., Board of Tr;ide 159 

Gallagher, Augustine, Kansas City 219 

Gates Iron Works, Chicago, 111 406 

Gates, John W. , Chicago, 111 265 

Geneva, 111., statement, T. B. Evans 329 

Germany : 

Exports and imports 548 

Breadstuffs 564 

Hog products 578 

Other provisions 583 

Prohibiting import of cattle aud fresh beef from the United states lf>7. 187 

Tariff 604 

Trade with Argentina 588 

Trade with Australasia 590 

Trade with Brazil 598, 599 

Trade with Spanish West Indies 600 

Trade with Central America 601 

Gilman Bros., Boston, Mass 441 

Glass, crockery, etc., circular of inquiry 452 

Replies from — 

Hartford City Glass Company, Hartford City, Ind 454 

Homer Laughlin, East Liverpool, Ohio 453 

R. E. Dietz Company, New York 456 

Union Porcelain Works, Brooklyn, N. Y 455 

Glencoe, Minn., Board of Trade 172 

Globe Company 468 

Glover & Odendahl 540 

Goddard, E. , Flour Mill Company, St. Louis, Mo 323 

Goodrich, B. F., Company, Akron, Ohio 497 

Goshen Milling Company, Goshen, Ind 323 

Gould's Manufacturing Company, Seneca Falls, N. Y 306 

Governor Works, Akron, Ohio 310 

Grace, W. R., & Co 528 

Grain exports from Argentina 98 

Grand Island, Nebr., letter of H. T. Oxnard 303 

Guatemala : 

Exports and imports 548 

Principal articles exported and imported 556 

Tariff 608 

Haiti : 

Other provisions 585 

Tariff 614 

Harrison Bros. & Co., Grays Ferry, Philadelphia, Pa 439 

Harter, Isaac, Company, Fostoria, Ohio 335 

Haskell, Edward H., statements 313, 317 

Haydock Carriage Company 479 

Head of the Lakes Millers' Association of Duluth and Superior 173 

Heath & Mulligan Manufacturing Company, Chicago, 111 446 

Herrmann, Theo 521 

Hibbard, Spencer, Bartlett & Co., Chicago 390 

Hoffman, C, & Son, Enterprise, Kans 324 

Hog products, total exports 577 

Honduras : 

Exports and imports 548 

Principal articles of exports and imports 557 

Tariff 610 

Hongkong: 

Breadstuffs 572 

Huegely Milling Company, Nashville, 111 339 

Imports from — 
Argentina to — 

France 588 

Germany 588 

United Kingdom 588 



636 INDEX. 

Imports from — Continued. Page. 

Australasia to — 

Principal countries 590 

United States 589 

Austria-Hungary 548 

Brazil to — 

France 595 

Germany , 598, 599 

United Kingdom 591 

United States 548, 549 

British Guiana 548, 550 

British West Indies 548, 552 

Central American states to — 

France 595 

Germany 601 

United Kingdom 592 

Cuba 548,553 

Germany 548 

Guatemala 548. 556 

Honduras 548, 557 

Nicaragua 548, 558 

Salvador 548, 559 

Santo Domingo 548, 555 

Spanish West Indies to — 

France 596 

Germany 600 

United Kingdom 593 

Puerto Rico 548, 554 

Indianapolis, Ind., Winter Wheat Millers' League 163 

Iron and steel, circular of inquiry 380 

Replies from — 

Alford & Berkele Company 390 

Atlas Tack Corporation 395 

Baldwin Locomotive Works 382 

Brush Electric Company 388 

Cambria Iron Company 385 

Central Iron Works 383 

Cincinnati Corrugating Company 400 

Dean Bros. Steam Pump Works 395 

Dederick, P. K 394 

Disston, Henry, & Sons 387 

Edge Moor Bridge Works 395 

Hibbard, Spencer, Bartlett & Co 390 

Livingston Nail Company 396 

Maryland Steel Company 384 

Nail, H. P., Company 381 

Nicholson File Company 391 

Northwestern Malleable Iron Company 387 

Passaic Rolling Mill Company 386 

Peerless Manufacturing Company 392 

Pratt & Cady Company 395 

Reading Stove Works 393 

Scoville Manufacturing Company 389 

Seidel & Hastings Company 401 

Swank, James M .. 397 

Wood, R.D., &Co 402 

Wilks Manufacturing Company 394 

International Food Company, Minneapolis 487 

Italy, tariff.. 606 

Japan : 

Breadstuffs 573 

Imports and exports 110-116 

Tariff 620 

Japan and China, trade with 107 

Japanese trade with the United States 109 

Jarecki Manufacturing Company, Erie, Pa 409 

Johnston Harvester Company, Batavia, N. Y 431 

Jones, C. G., Oklahoma City 203 

Josephine Moore Company, Chicago, 111 450 

Kansas Millers' Association 182 



INDEX. 637 

Pase. 

Kauffman Milling Company, St. Louis, Mo 343 

Kehlor Bros, St. Louis, Mo 350 

Keystone Manufacturing Company, Sterling, 111 436 

Keystone Watch Case Company, Philadelphia 461 

Kingsbury, F. J., Waterbury, Conn 411 

Kingsland & Douglass Manufacturing Company, St. Louis, Mo 302 

Kimball, W. W., Company 464 

Kohn, Weil & Co 531 

Kurzman Bros., New York 486 

La i<lLa\v-l hum-Gordon Company, Cincinnati 418 

Lanman &, Kemp 538 

Lauras Loomis, Catliu & Co., New York 541 

Lawrence Johnson & Co 5^9 

Levering, Eugene, president Baltimore Hoard of Trade 268 

Lexington Roller Mills Company, Lexington, Ky 342 

Liberty Machine Works, New York 411 

Link Belt Engineering Company, Philadelphia, Pa 422 

Link Belt Machinery Company, Chicago, 111 415 

Live Stock Exchange of St. Louis 155 

Live Stock Exchange, National, Chicago 162, 185 

Live stock industry 193 

Livingston Nail Company, New York 396 

Loaiza & Co 536 

London, dock charges and ocean bills of lading 259 

Longman & Martinez, New York 445 

Los Angeles Semi-Tiopic Fruit Exchange 179 

Louisiana Sugar and Rice Exchange, New Orleans 173 

Louisville and Nashville Railroad Company, St. Louis, Mo 300 

Lowell Manufacturing Company, Lowell, Mass 374 

L v mans ville Company, Providence, R.I 309 

Lyon, Clement & Greenleaf Company, Wauseon, Ohio 318 

Machinery, circular of inquiry 403 

Replies from — 

Atlas Engine Works 420 

Ball & Wood 408 

Black & Clawson Company 409 

Brass and Iron Works Company 421 

Cincinnati Tool Company 425 

Col well, A. W., engineer, etc 423 

Crane Company 419 

Detroit Steel and Spring Company 404 

Diamond Machine Company 410 

Draper, Geo., & Sons 405 

Field, J. A., Manufacturing Company 409 

Filer & Sto well Company 407 

Gates Iron Works 406 

Jarecki Manufacturing Company 409 

Kingsbury, F. J 411 

Laidlaw-Dunn-Gordon Company 418 

Liberty Machine Works 411 

Link Belt Engineering Company 422 

Link Belt Machinery Company 415 

Nordyke & Marmon Company 416 

Payne, B. W., & Sons 417 

Pelton Water Wheel Company 422 

Springfield Machine Tool Company 416 

Standard Machinery Company 411 

Still well-Bierce & Smith- Vaile Company 412 

Wallace Manufacturing Company 413 

Mansfield, Ohio, Barnes Manufacturing Company 311 

Manufacturers' Association of Kings and Queens Counties, N. Y 152 

Manufacturers and merchants, replies of, Appendix J 293 

Manufacturing Company, Kingsland & Douglass, St. Louis, Mo 302 

Mason & Hamlin Company 465 

Marble, Jerome & Co., Boston, Mass 444 

Marinette and Menominee Box Company 4 66 

Marion Manufacturing Company, Marion, Ohio 432 

Marshall & Co., Kearny, N. J 377 

Martinsburg, W. Va., Business Men's Association 161 



638 INDEX. 

Pago. 

Maryland Steel Company, Baltimore, Md . . . 384 

Meat products exported from Argentina 588 

Merchants' Exchange, Buffalo, N. Y 170 

Merchants' Exchange of St. Louis 148 

Merchants and Business Men's Association, Chester, Pa 179 

Meriden Bronze Company, New York 460 

Meridian, Miss., Young Men's Business League 153 

Mexico : 

Breadstuff's 567 

Hog products 580 

Tariff 610 

Michigan State Millers' Association 152 

Miles & Son, Frankfort, Ky 334 

Millbourne Mills Company, Philadelphia, Pa 335 

Miller Lock Company, Philadelphia, Pa 483 

Millers' Association of Northern New York, Watertown, N. Y 177 

Millers' National Association of the United States 151 

Mills and milling companies, replies from — 

Acme Milling Company 322 

Anchor Mill Company 333 

Aviston Milling Company „ 332 

Ballard & Ballard Company 335 

Barber, D. R., & Son 337 

Bernhard, Stern & Co 340 

Bliss Milling Company 327 

Cleveland Milling Company . . . . 336 

Commercial Milling Company 337 

Cowgill & Hill Milling Company 349 

Cumberland Mills 334 

Daisy Roller Mill Company 341 

Dauphin Roller Flouring Mills 335 

Farwell & Rhines 332 

Fry burg Roller Mills Company 342 

Goddard. E., Flour Mill Company 323 

Goshen Milling Company 323 

Harter, Isaac, Company 335 

Hoffman, C, & Son 324 

Huegley Milling Company 339 

Kauffman Milling Company 343 

KehlorBros 350 

Lexington Roller Mills Company 342 

Miles & Son 334 

Millbourne Mills Company 335 

Mosely & Motley Milling Company 322, 334 

New York Biscuit Company 333 

Northwestern Elevator and Mills Company 344 

Regina Flour Mill Company 338 

Saxony Mills . 321 

Sessinghaus Milling Companv 331 

Shelby Mill Company 346 

Sparks Milling Company 341 

Sperry Flour Company 353 

Stanard, E. O., Milling Company 320 

Star and Crescent Milling Company 331 

Swartley Bros. & Co 335 

Tate, Miller & Co 326 

Taylor Bros. Milling Company 339 

Thompson Milling Company 333 

Tomlinson, Geo., & Son 333 

Victoria Flour Mills 323 

Weekly Northwestern Miller 328 

Milwaukee Chamber of Commerce 149 

Mineralized Rubber Company 371 

Minneapolis Board of Trade 184 

Minneapolis, Minn., statement of — 

Bovey, Charles C 256 

Crosby, John 251 

Pills bury, Charles A 239 






INDEX. 639 

Page. 

Miscellaneous manufacturers, circular of inquiry 482 

Replies from — 

Becker, William, Leather Company 487 

Bloom, Samuel, & Sons 499 

Boulton, Bliss & Dallett 490 

Crane, J. B., & Co 492 

Crown Distilleries Company 501 

Debutts & Daggett 486 

Dennis, J. A 497 

Dole Bros. Company : 491 

Etowah Iron Company 483 ' 

Goodrich, B. F., Company 497 

International Food Company 487 

Kurznian Bros 486 

Miller Lock Company 483 

National Cash Register Company 488 

New Orleans Brewing Association 498 

Parsons, \V. H., & Co 497 

Peck- Williamson Heating and Ventilating Company 485 

Standard ( )il Company of New York 496 

Tolton, Joseph P 500 

Werner Company 485 

Moline Plow Company, Moline, 111 430 

Moore's, John, Sons Company, Raritan, N. J 434 

Moselv & Motley Milling Company, Rochester, N. Y 322, 334 

Mulford, H. K.,&, Co., Philadelphia, Pa 446 

Muncie Wheel Company 473 

Nail, H. P., Company, Cleveland, Ohio 381 

National Association of Manufacturers, Philadelphia, Pa 296 

National Association of Wool Manufacturers 171 

National Cash Register Company, Dayton, Ohio 488 

National Live Stock Exchange 154 

National Live Stock Exchange, Chicago 162, 185 

National Provision Publishing Company 359 

Netherlands : 

Breadstuffs 565 

Hog products 578 

Other provisions 583 

Tariff 606 

Newfoundland, attitude of 70 

New Jersey State board of agriculture 281 

New Orleans Brewing Association, New Orleans, La 498 

New Orleans Sugar and Rice Exchange 173 

Newton, Kans., Commercial Club 

New York : 

American Cranberry Trade Company 330 

American Paper Makers' Association 180, 313 

Associated Manufacturers 157 

Biscuit Company 333 

Board of Trade and Transportation 176 

Central and South American Telegraph Company 301 

Chamber of Commerce 176 

Cone Export and Commission Company 301 

Resolutions by the legislature 159 

Wholesale Grocers' Association 160 

New York and Cuba Mail Steamship Company 308 

Nicaragua : 

Principal articles exported and imported 558 

Tariff 610 

Total value of exports and imports 548 

Nicholson File Company, Providence, R. 1 305 

Niederlein, Gustavo, The Philadelphia Museum 309 

North Adams, Mass., Board of Trade 181 

Northampton Board of Trade 154 

Northern New York Millers' Association, Watertown, N. Y 177 

Northwestern Elevator and Mill Company, Toledo, Ohio 344 

Northwestern Malleable Iron Company, Milwaukee 387 

Norton Bros., Chicago, 111 306 

Norton Door Check and Spring Company 473 



640 INDEX. 

Page. 

Nordyke & Marmon Company, Indianapolis 416 

Obstacles in the way of trade 205 

Ocean bills of lading and London dock charges 259 

Oklahoma City Winter Wheat Millers' Association 203 

O'Reilly, John Fanning 366 

Organs, pianos, etc., circular of inquiry 463 

Replies from. (See Pianos, organs, etc.) 

Orwigsburg, Pa., committee on industrial extension 156 

Oteri, S 532 

Other provisions, total exports 582 

Oxnard, Henry T., Grand Island, Nebr 303 

Palmer, Smith & Co., Newark, N. J 301 

Paper Makers' Association, New York 180, 313 

Parks, Davis & Co., Detroit, Mich 272 

Parsons, W. H., & Co 497 

Passaic Rolling Mill Company, Paterson, N. J 386 

Paterson, N. J., Board of Trade 159 

Patterson, Ramsey & Co ' 530 

Payne, B.W.,& Sons, Elmira, N. Y 417 

Peck, William E., & Co 515 

Peck- Williamson Heating and Ventilating Company, Cincinnati, Ohio 485 

Peerless Manufacturing Company, Louisville, Ky 392 

Pelton Water Wheel Company, San Francisco 422 

Pensacola, Fla., Chamber of Commerce 279 

Perkins, Goodwin & Co., New York 304 

Philadelphia, Pa., Ayres, B 309 

Philadelphia, Pa., Board of Trade 222 

Philadelphia, Pa., Museum 309 

Phcenix Silk Manufacturing Company 367 

Pianos, organs, and furniture, circular of inquiry 463 

Replies from — 

Dornette, J., & Bro., Cincinnati, Ohio 465 

Globe Company, Cincinnati, Ohio 468 

Kimball, W.W.,& Co., Chicago, 111 464 

Mason & Hamlin Company 465 

Marinette and Menominee Box Company, Marinette, Wis 466 

Standard Sewing Machine Company, Cleveland, Ohio 467 

Stork & Clarke Piano and Organ Company, Chicago, 111 466 

White Sewing Machine Company, Cleveland, Ohio 468 

Pillsbury, Charles A., statement, Minneapolis, Minn 239 

Pittsburg, Pa., Chamber of Commerce 178 

Plankinton Packing Company 364 

Plant Steamship Line, Port Tampa, Fla , , 314 

Pomares <fc Cushman 516 

Pratt & Cady Company, Hartford, Conn 395 

Price, effect upon wheat 215, 220 

Principal imports from the United States to Canada 75 

Products of America, restrictions on 137 

Prouta Cura Company, Meriden, Conn 443 

Providence, R. I., Lymansville Company 309 

Provisions, circular of inquiry 354 

Replies from — 

Armour & Co., Chicago, 111 355 

Cudahy Bros. & Co., Milwaukee, Wis 365 

Cudahy Packing Company, Chicago, 111 357 

National Provision Publishing Company, New York 359 

Plankinton Packing Company, Milwaukee, Wis 364 

Puerto Rico : 

Breadstuffs 569 

Hog products 579 

Principal articles exported and imported 554 

Tariff 614 

Total value of exports and imports 548 

Puig, Emilio 532 

Reading Stove Works, Reading, Pa 393 

Reciprocity and retaliation needed 163 

Reciprocity is of great importance to Newfoundland 71 

Reciprocity treaty with Canada, 1854 85 

Regina Flour Mill Company, St. Louis, Mo - 333 



INDEX. 641 

Replies to inquiries : Page. 

Agricultural implements 428 

Breadstuff's 320 

Cars, vehicles, etc 471 

Clocks, watches, fancy goods 459 

Commercial and industrial organizations 147 

Commisson and export merchants 512 

Drugs, medicines, chemicals 439 

Furniture, pianos, and organs 464 

Glass, crockery, etc 453 

Iron and steel 381 

Machinery 404 

Miscellaneous 483 

Provisions 355 

Resolutions by the legislature of New York 159 

Retaliatory measures of France 228 

Restriction on American products by foreign countries 137 

Rice, Say ward & Whitten, New York 370 

Richards & Co., New York 315 

Robinson Chilled Plow Company, Canandaigua, N. Y 431 

Rock River Cotton Company, Janesville, Wis 368 

Rothschild Bros. & Co 517 

Salvador : 

Principal articles exported and imported 559 

Tariff 610 

Total value of exports and imports 548 

Santo Domingo : 

Principal articles exported and imported 555 

Tariff 614 

Total value of exports and imports 548 

Saxony Mills 321 

Schenck, L. F. S., Marlboro, N. J 280 

Schieren, Chas. A., & Co 372 

Scoville Manufacturing Company, Waterbury, Conn 389 

Scranton Board of Trade 174 

Seaburv & Johnson, New York 447 

Search,' Theodore C 300 

Seidel & Hastings Company, Wilmington, Del 401 

Seixas, A. M 518 

Semi-Tropic Fruit Exchange, Los Angeles, Cal 179 

Sessinghaus Milling Company, St. Louis, Mo 331 

Sharpless Dye- Wood Extract Company, Philadelphia 450 

Sheffield Car Company 480 

Shelby Mill Company, Shelby, Ohio 346 

Sioux City Commercial Association 151 

Smith, Hogg & Gardner 515 

Spain, tariff 606 

Sparks Milling Company, Alton, 111 341 

Sperry Flour Company, San Francisco, Cal 353 

Springfield Machine Tool Company, Springfield, Ohio 416 

Springfield Woolen Mills, Springfield, 111 369 

Standard Machinery Company, Mystic, Conn 411 

Stanard, E. O., Milling Company, St. Louis, Mo 320 

Standard Oil Company of New York 496 

Standard Sewing Machine Company 467 

Star and Crescent Milling Company, Chicago, 111 331 

Statements of— 

Allerton, W . S. , Chicago 193 

Argentine legation 91 

Bovey, Charles C, Minneapolis 256 

Clardy, John D., a Representative from the State of Kentucky 286 

Cotterill, Charles A., Detroit 272 

Crosby, John, Minneapolis 251 

Curtis, William E., Washington 79, 107 

Davis, M. H., Shelby, Ohio 209 

Denise, D. D 281 

Diez. L. Rodiguez, Montevideo 101 

Farrar, Edward, Toronto, Canada 63 

Fishback, George W., secretary of legation, Buenos Ayres 94 

H. Rep. 2263 41 



642 INDEX. 

Statements of — Continued. Page. 

Gallagher, Augustin, Kansas City 219 

Gates, John W., Chicago , 265 

Gould's Manufacturing Company, Seneca Falls, N..Y 306 

Jones, C. G., Oklahoma City 203 

Levering, Eugene, Baltimore, Md 268 

Nicholson File Company, Providence, R. I 305 

Pillsbury, Charles A., Minneapolis 239 

Schenck, L. F. S., Marlboro, N.J 280 

Stewart, C. Morton, Baltimore, Md 269 

Thompson, W. H., Chicago 199 

Thurber, F. B., New York 312 

Wiley, H. W 127 

Statistical tables relating to foreign commerce 548 

Stetson, John B., Company, Philadelphia, Pa 369 

Stewart, C. Morton, Baltimore, Md 304 

Stillwell-Bierce & Smith- Vaile Company, Dayton, Ohio 412 

Stoddard Manufacturing Company, Dayton, Ohio 432 

Stork & Clark Piano and Organ Company 466 

St. Louis Live Stock Exchange 155 

St. Louis Manufacturing Company : 302 

Substances used for coloring and preserving meats in Germany 128 

Sugar, Henry T. Oxnard 303 

Sugar and Rice Exchange, New Orleans 173 

Sussdorff, Zaldo & Co 532,533 

Swank, James M., general manager Iron and Steel Association 397 

Swartley Bros. & Co., Doylestown, Pa 335 

Sweden and Norway : 

Breadstuffs 566 

Hog products 579 

Other provisions 584 

Tariffs 606 

Tampa, Fla., Plant Steamship Line 314 

Tariffs, foreign 604 

Tate, Miller & Co., Baltimore, Md 326 

Taylor Bros. Milling Company, Quincy, 111 339 

Textiles, circular of inquiry. 366 

Replies from — 

American Multiple Fabric Company 372 

Brigham, Hopkins & Co 370 

Catlin&Co 378 

Contoocook Mills Company 371 

Fairmont Worsted Mills 368 

Feder, Silberberg & Co 375 

Lowell Manufacturing Comp an v 374 

Marshall & Co 377 

Mineralized Rubber Company 371 

Phoenix Silk Manufacturing Company 367 

Rice, Sayward & Whitten 370 

Schieren, Chas. A., & Co 372 

Springfield Woolen Mills 369 

Stetson, John B., Company 369 

Turner, J. Spencer 376 

Thompson, W.H 199 

Thompson Milling Company, Lockport, N. Y « 333 

Thurber, F. B., New York 312 

Tobacco Board of Trade, Clarksville, Tenn 175 

Tolton, Joseph P., Boston, Mass 500 

Tomlinson, Geo., & Son, Perry, N. Y 333 

Trade with — 

Argentina 79 

China and Japan 107 

Mexico .-. 231 

Trautman, Jac. & Co. , New Orleans 311 

Tricycle Manufacturing Company 474 

Tupelo, Miss., Board of Trade 177 

Turkey, tariff 608 

Turner, J. Spencer, New York 376 



INDEX. 643 

United Kingdom : Pa S e - 

Breadstuffs 561 

Hog- products 578 

Other provisions 584 

Tariff 60S 

Trade with — 

Argentina 588 

Australasia 590 

Brazil 591,592 

Central America 592, 593 

Spanish West Indies 593,594 

Uruguay, beef exported 102 

Various industries 265 

Vehicles, cars, etc. , circular of inquiry 470 

Replies from — 

Browuell Car Campany, St. Louis, Mo 473 

Chattanooga Car and Foundry Company 474 

Columbus Buggy Company, Columbus, Ohio 474 

Dash and Carriage Goods Company, Cincinnati, Ohio 479 

Haydock Carriage Company, Cincinnati, Ohio 479 

Muncie Wheel Company, Muncie, 111 473 

Norton Door Check and Spring Company, Boston 473 

Sheffield Car Company, Three Rivers, Mich 480 

Tricycle Manufacturing Company, Springfield, Ohio 474 

Welis & French Company, Chicago, 111 471 

Velasco, Tex., Commercial Club 180 

Venezuela : 

Breadstuffs 575 

Hog products 581 

Other provisions 585 

Tariff 620 

Victoria Flour Mills 323 

Wallace Manufacturing Company, Frankfort, Ind 413 

Washburn-Crosby Company, Minneapolis, Minn 251 

Watches, clocks, fancy goods, circular of inquiry 458 

Replies from — 

Ansonia Clock Company, New York 459 

Keystone Watch Case Company, Philadelphia, Pa 461 

Meriden Bronze Company, New York 460 

Ware, Jas. A., Whitecastle, La. ... 306 

Watertown. X. Y., Farwell & Rhines 332 

Wauseon. Ohio, Lyon Clement & Greenleaf Company 318 

Weekly Northwestern Miller 328 

Wells & French Company 471 

Werner Company, Chicago, 111., and Akron, Ohio 485 

West Indies, sales of flour 225 

Wheat : 

Effect of reciprocity arrangements upon the price of 215, 220 

Uruguay 101 

White Sewiug Machine Compauy 468 

Wholesale Grocers' Association of New York 160 

Winter Wheat Millers' Association. Oklahoma City 203 

Winter Wheat Millers' League, Indianapolis, Ind ." 163 

Winter Wheat Millers' League, Shelbv, Ohio 209 

Wiley, H. W 127 

Wilks Manufacturing Company, Chicago, 111 394 

Williams. Richardson & Co * 536 

Wilson law. effect of, in Canada 72 

Wood, Fred. A.. Winterport, Me 310 

Wood, R. D., & Co., Philadelphia, Pa 402 

Wool.... 96,103 

Wool Manufacturers' National Association 171 

Wrampelmeier. T. J., San Francisco 303 

Young Men's Business League, Meridian. Miss 153 






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